This Chinese Stock Could Rally 80% in 2024

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Over the last few days, shares of Netease.com (NTES) gapped from $105 to $87.64.

All after Chinese regulators introduced regulations to reduce spending, and cut incentives that promote excessive gaming. According to Benzinga, “The new rules prohibit online games from offering rewards for daily logins, first-time spending, or consecutive purchases – typical features in many games, Reuters reports.”

However, according to Morgan Stanley’s Alex Poon – who has an overweight rating and a $150 price target on NTES – says the potential guidelines will have minimal revenue impact on NTES. He says the sell-off has made its short-term valuation “much more compelling” and could help send the stock up over the next 60 days, as noted by CNBC.

NTES last traded at $87.64, and could soon refill its bearish gap.