NetEase’s $8 Billion Sell-Off Seen as Overdone as Tencent Game Threat Subsides

(Bloomberg) — The $8 billion wipeout in NetEase Inc.’s market value over the past three weeks on concerns of competition from a new Tencent Holdings Ltd. game ignores the company’s strong market position in China.

Bulls believe that NetEase will rebound, thanks to the massive popularity of its Eggy Party, as well as a promising pipeline of new titles. They also note that the company is a “pure play” in games, which are more recession-proof than other consumer segments where Tencent is exposed.