Netease (NASDAQ: NTES) has had a phenomenal run in the year 2013 with the stock having gained over 74% in the year to date. So what is it that drives such faith in the company? Over the last two quarters, Netease has been consciously shifting its focus on in-house developed games rather than solely depending on games from partner Activision Blizzard. The company’s new in-house developed games released this year include Heroes of three Kingdoms and Dragon sword, which have seen a large acceptance among the fast growing Chinese online gaming community. The company’s recent thrust to enter into the mobile space with games for mobile platforms as well as the tie-up with China Telecom to launch ‘YiChat’ show the company’s commitment to the Mobile platform as a future engine of growth. The company has slowly but steadily diversified its operations which we believe will hold the company on solid ground in the time ahead. To read our detailed analysis of Netease, visit our ‘stock picks’ section here.
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