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☆ Goldman Sachs likes these 2 mobile gaming stocks set for 'blockbuster' launches, gives one 40% upside
▼ + stars: | 2024-04-26 | by ( Amala Balakrishner | In Amala-Balakrishner | ) www.cnbc.com time to read: +3 min

Investors seeking exposure to China's growing mobile gaming industry should look at technology giants Tencent and NetEase , according to Goldman Sachs. The investment bank expects "China to see faster growth from mid 2024 supported by game launches and a loosening regulatory environment." Tencent Tencent's game sales were up 14% year on year domestically in March and 36% internationally. NetEase NetEase posted a 16% year-on-year rise in domestic sales growth and 1% rise in international sales growth last month, Goldman's analysts noted. Domestic mobile game sales fell by 12% year-on-year Japan in the first quarter of the year.

Persons: Goldman Sachs, 2Q24, Lincoln Kong, FactSet, NetEase NetEase, Michael Bloom Organizations: Street, Hong, Nasdaq, Hong Kong Stock Exchange, China, Domestic Locations: China, Tencent, Hong Kong, Japan, South Korea

☆ China's potential new gaming rules will hit smaller developers more, analyst says
▼ + stars: | 2023-12-25 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +2 min

"With a lower revenue for online games, the ad industry would be impacted too," he said. UBS estimates online games account for about 20% of the online ad industry's revenue. BEIJING — China's proposed gaming rules would hit smaller developers more than large ones, while also reducing overall online advertising revenue, according to UBS. It's "very common" for online games to encourage daily sign-in and offer rewards for the initial in-app purchase, UBS's Fong said. "As the online game is a very creative industry," he said, "we believe the game developers would likely design other means to attract and retain users."

Persons: Kenneth Fong, BEIJING —, UBS's Fong, Fong Organizations: UBS, Christmas, Gaming, National Press, Administration Locations: China, Hong Kong, BEIJING, Beijing

☆ China's cyberspace regulator summons Alibaba's Quark, Netease CC over vulgar content
▼ + stars: | 2023-10-30 | by ( ) www.reuters.com time to read: +1 min

[1/2] The logo of Alibaba Group is lit up at its office building in Beijing, China August 9, 2021. REUTERS/Tingshu Wang/File Photo Acquire Licensing RightsBEIJING, Oct 30 (Reuters) - China's cyberspace regulator on Monday fined the Alibaba-owned (9988.HK) Quark platform 500,000 yuan ($68,342.42) for hosting and promoting vulgar content. The regulator also ordered Netease's (9999.HK) livestream platform Netease CC to suspend the broadcast of some types of dance content for seven days due to vulgar content, the Cyberspace Administration of China said in a statement. Quark said it attaches great important to the matter and relevant illegal content has been banned on the platform, China's state-backed Securities Times reported. ($1 = 7.3161 Chinese yuan renminbi)Reporting by Beijing Newsroom, Editing by Louise HeavensOur Standards: The Thomson Reuters Trust Principles.

Persons: Tingshu Wang, Netease's, Quark, Louise Heavens Organizations: REUTERS, Rights, HK, Quark, Cyberspace Administration, Securities Times, Beijing, Thomson Locations: Beijing, China, Rights BEIJING

☆ Morgan Stanley says this China stock is a global video game 'powerhouse' with 40% upside
▼ + stars: | 2023-10-18 | by ( Pia Singh | ) www.cnbc.com time to read: +2 min

Investors should scoop up shares of NetEase before it hits the global runway, according to Morgan Stanley. Analyst Alex Poon maintained his overweight rating on the China-based technology company and raised his price target by $15 to $150. "After tripling its market share in China in the last decade, NetEase is emerging as a global video games content powerhouse by forming synergistic partnerships with gaming industry veterans globally that will likely drive a similar runway for its global market share," Poon wrote in a Tuesday note. Another potential boost to NetEase's growth is its long-term goal to develop at least one-third of its global IPs in future, which would drive half of its game revenue from international markets and provide "significant upside" to its current global market share of roughly 1%, the analyst said. NetEase expects its international studios to start releasing game titles in 2025.

Persons: Morgan Stanley, Alex Poon, Poon, NetEase, — CNBC's Michael Bloom Locations: NetEase, China

☆ China online platforms scrap lucky draw features amid gambling crackdown
▼ + stars: | 2023-08-25 | by ( Josh Ye | ) www.reuters.com time to read: +4 min

Analysts say online content platforms pulled the plug on features such as virtual lucky draws after the government in June started cracking down on live streaming, as part of a wider clampdown on online gambling. While the platforms say they ban gambling, analysts say the extremely popular lucky draws are often manipulated by live streamers colluding with viewers to share the prize. None of these companies mentioned the gambling crackdown when they reported their earnings, and they did not respond to request for further comment. However, the co-founder of a popular live streaming platform in Guangzhou, who declined to be named citing the sensitivity of the topic, told Reuters that several popular live streaming and live chat apps had to suspend services after police probes. Online gambling remains a concern, with the authorities saying in 2020 that the cross-border flow of funds for gambling posed a national security risk.

Persons: Florence Lo, HONG KONG, Analysys, Ivan Su, Huya, Charlie Chai, Tencent, Chai, Josh Ye, Farah, Brenda Goh Organizations: Entertainment, QQ, REUTERS, Tencent, HK, Morningstar, Cloud, NetEase, Reuters, Thomson Locations: HONG, Guangzhou, Beijing

☆ Cramer's Lightning Round: Wingstop is a buy
▼ + stars: | 2023-08-10 | by ( Julie Coleman | ) www.cnbc.com time to read: +1 min

Stock Chart Icon Stock chart icon Public Storage's year-to-date stock performance. Public Storage : "I like that...I'm gonna have to say [buy, buy, buy!]" Stock Chart Icon Stock chart icon RingCentral's year-to-date stock performance. Buy, buy, buy!" Stock Chart Icon Stock chart icon Autodesk's year-to-date stock performance.

Persons: I'm, It's Organizations: Primoris, Scotts, Scotts Miracle, Autodesk

☆ These 'best-in-class' stocks could bolster your portfolio as market unease resurfaces, analysts say
▼ + stars: | 2023-08-05 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Wall Street analysts named a list of stocks this week that they say could offer protection for investors as market tension rises. "We view Zscaler as a best-in-class, next generation cybersecurity company built for the distributed cloud world," he added. Earlier this week, the firm initiated coverage of the aerospace and defense components company with a buy rating. Zscaler - BTIG, buy rating "Over the last couple of months, we have spoken with seven contacts with a view on ZS, and feedback has been consistently positive. TransDigm Group - Citi, buy rating "The company's focus on proprietary products & lean operations affords pricing power and margin expansion potential.

Persons: Jason Kupferberg, Kupferberg, TOST, Zscaler, Gray Powell, Powell, Jason Gursky, Gursky, TransDigm, BURL, ROST, LULU, NetEase, Morgan Stanley Organizations: CNBC, Urban Outfitters, Toast Bank of America, TransDigm Group Citi, TransDigm, Barclays, Free, Citi, NetEase, Bank of America, TAM Locations: 2H23

☆ China’s video game makers come in from the cold as crackdown eases
▼ + stars: | 2023-01-20 | by ( Josh Ye | ) www.reuters.com time to read: +5 min

[1/2] The Tencent Games logo is seen on its game on a mobile phone in this illustration picture taken August 3, 2021. "We believe the approvals indicate a more benign regulatory environment for the China gaming industry," JP Morgan analysts wrote in a note on Wednesday. "With rich game supply, we are more positive on overall online game market growth during Chinese New Year, a traditional strong season for the China online game market." Whether the gaming market can return to form also depends on the recovery of the Chinese economy, which has been thumped by a surge in COVID infections. However, data shows China’s total gamer population remains stable, slipping just 0.33% in 2022 from 2021 to 664 million.

☆ Tencent, NetEase shares rise as China gaming crackdown eases
▼ + stars: | 2023-01-18 | by ( ) www.reuters.com time to read: +1 min

HONG KONG, Jan 18 (Reuters) - Shares of Tencent Holdings (0700.HK), the world's largest gaming company, and smaller rival NetEase Inc (9999.HK) rose on Wednesday after China's video games regulator granted the first gaming licences in 2023, further easing an industry crackdown. Tencent's shares rose as much as 1.7% in early trade before paring gains, while NetEase's stock jumped as much as 5.8% to its highest in more than four months. Unlike in most other countries, video games need approval from regulators before release in China. Last month, China's move to grant publishing licences to 44 foreign games for domestic release was the strongest signal that the clampdown was ending. Regulators resumed issuing gaming licences to homegrown games last April, and the approval of foreign games was seen as the last regulatory curb to be removed.

Nov 17 (Reuters) - Activision Blizzard (ATVI.O) said on Thursday it would suspend most Blizzard game services in mainland China once its current licensing agreements with NetEase (9999.HK) end in January. California-based Blizzard said new sales would be suspended in the coming days and players would receive further details. The absence of Blizzard games could cause a 6-8% drop in NetEase's revenue next year, analysts from Daiwa Capital Markets wrote in a research report on Nov. 9. The estimate is founded on the basis that licensed games account for around 10% of NetEase's total revenue and Blizzard accounts for 60-80% of licensed games. "We are looking for alternatives to bring our games back to players in the future," Blizzard President Mike Ybarra said in the statement.

☆ World of Warcraft to go offline in China as Activision Blizzard and NetEase end 14-year deal
▼ + stars: | 2022-11-17 | by ( Ryan Browne | ) www.cnbc.com time to read: +1 min

The booth of Blizzard Entertainment at the Chinajoy Expo in Shanghai, China, on Aug. 2, 2019. Activision Blizzard and Chinese gaming firm NetEase are ending their 14-year licensing agreement, a move that will result in hit game franchises like World of Warcraft and Overwatch shutting down in China. The deal, which was first struck back in August 2008, will now expire in January 2023 after the two firms were unable to agree on renewal terms. World of Warcraft, a massively multiplayer online game, is hugely popular in China. In a statement, NetEase CEO William Ding said Blizzard and NetEase had "material differences on key terms" in deal negotiations.

☆ A game about sheep is going viral in China even as gaming regulation remains tight
▼ + stars: | 2022-09-28 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +4 min

A young Beijing company's game called "Sheep a Sheep" went viral in China in September 2022. That's because the new game, called Sheep a Sheep, sits inside ByteDance's Douyin and Tencent's messaging app WeChat as a mini-program. Sheep a Sheep just went viral these past few days. Weeks later in early September, Jianyou had launched the sheep game, according to posts on its official Weibo, a Twitter-like social media platform in China. In contrast, NetEase's first game approval in more than a year came 10 months after the company registered the software, according to Tianyancha data.

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