---
title: "Citi: Strong 2Q Game at NTES Offset by Investment Losses Dragging Earnings; Buy Rating Maintained"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296562826.md"
description: "Citi maintains a Buy rating on NetEase (NTES), raising its target price from USD174 to USD178. While Q2 revenue grew 7.9% YoY to RMB30.1 billion, beating expectations, non-GAAP net profit fell short due to investment losses and higher taxes. Citi views NTES as a defensive stock benefiting from AI in game development and a diversified portfolio."
datetime: "2026-08-21T03:21:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296562826.md)
  - [en](https://longbridge.com/en/news/296562826.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296562826.md)
generator: "portal-rs"
---

# Citi: Strong 2Q Game at NTES Offset by Investment Losses Dragging Earnings; Buy Rating Maintained

In light of strong game revenue, NTES (09999.HK) +3.000 (+1.551%) Short selling $570.46M; Ratio 38.660% 's total revenue for 2Q added 7.9% YoY to RMB30.1 billion, beating expectations, Citi said in a research report. However, non-GAAP net profit reached RMB7.75 billion, below market expectations, which the broker believed was jeopardized by investment losses, impairment provisions and a higher effective tax rate.

Citi raised its TP for NetEase, Inc. (NTES.US) from USD174 to USD178 and maintained its Buy rating. The broker viewed NetEase, Inc. as a defensive stock that could benefit from the AI multiplier effect in game development, a diversified game portfolio and its continued shareholder return policy.  
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-20 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

### Related Stocks

- [NTES.US](https://longbridge.com/en/quote/NTES.US.md)
- [09999.HK](https://longbridge.com/en/quote/09999.HK.md)
- [C.US](https://longbridge.com/en/quote/C.US.md)
- [C-R.US](https://longbridge.com/en/quote/C-R.US.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**