Stocks edged higher this morning in early trading. It’s been a tough week for investors, but gains today would cut into sizable weekly losses for the major averages. So far this week the S&P 500 is down 2.75%, the Dow has lost 2.21% and the Nasdaq has dropped 4.1%.
Spiking volatility can be unnerving for some investors, but volatility can also be your friend. Sharp sell-offs — including the one we experienced this week and the more pronounced COVID-19-fueled markdown in March of last year — can also create opportunities to buy new stocks or add to existing positions. Today’s trade alert highlights one such opportunity, read on to learn more.
Banyan Hill Publishing:
Just $2 a Share Today — The No. 1 Investment of the 2020s
New technology’s user base growing at 5X the speed of the internet in the 1990s. Could dwarf dot-com boom. [Click here to get details on $2 stock now.]
NetEase Inc (NTES) develops and operates mobile and PC games, communities, and eCommerce platforms. Its titles include some of the most popular games in China such as the Westward Journey series, Ghost, and partnering with Activision Blizzard (ATVI) to deliver Chinese-versions of Blizzard games to its users.
NTES became a public company in 2000. Since then, the video game industry has gone from a $20 billion industry to be worth nearly $200 billion. NTES has ridden this wave to become one of the most valuable video game companies in the world. It’s looking to maintain its standing as one of the leading gaming companies in China with new products including a VR-based, open-world, role-playing game that is highly anticipated by the gaming community.
Over the last ten years, NTES’s revenue has gone from $780 million to $11.2 billion. Next year, earnings are expected to grow by 60% and revenues by 27%. Due to this, NTES has a reasonable forward PE of 36.
NTES’s leading position in the video game market is expected to grow at a double-digit CAGR over the next decade. NTES also has shown the ability to develop and launch new games that are well-received by the public and partner with foreign developers to bring popular games to the Chinese market.
The current consensus among 42 polled analysts is to buy NTES. There are 36 Buy ratings, 3 Hold ratings and only 3 Sell ratings for the stock. A median price target of $136 represents a more than 33% upside.
NetEase is scheduled to report earnings on Tuesday, May 18th. Recent positive estimate revisions are a good indication that analysts anticipate an earnings beat. Considering that the stock is down nearly 8% so far this week and is down more than 23% from its February peak, the opportunity seems attractive.
Where to invest $1,000 right now...
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And it's not NetEase.
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Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Jeff Bezos Just Poured $10 Billion Into This…
Not many people know this story… But in 1998, Bezos invested $250,000 of his own money in Google, when the company was just getting started out of a garage in California. When Google went public in 2004, that $250,000 investment translated into 3.3 million shares of Google stock. Nobody knows if Bezos has sold any shares. If he hasn’t, today they’re worth more than $5.6 billion.Jeff Bezos is betting big on a new trend. This time he’s planning to invest $10 billion of his own money in this exciting new trend. That’s 40,000 times more money than what he invested in Google. That’s how big he thinks this could be. [Full Story…]