Ge Long Hui A P P·2025-08-01 09:40Group 1 - The core viewpoint of the article indicates that NetEase (NTES.US) has seen a decline in stock price, dropping 2.06% to $127.61 in pre-market trading, marking a total decline of 7.3% over the past six days [1] - Morgan Stanley has downgraded NetEase's stock rating from "Overweight" to "Neutral," citing limited earnings growth potential due to increased marketing expenses for new and existing games over the next 1-2 years [1] - The report highlights a lack of major new game releases in the second half of the year, which may hinder revenue growth from gaming [1] Group 2 - The article mentions that the gaming market in mainland China is becoming saturated with international game supply, which could impact the revenue certainty of upcoming titles like "Forgotten Sea" and "Infinity" in 2026 [1] - The projected compound annual growth rate (CAGR) for earnings per share from 2026 to 2027 is only 6% [1] - The target price for NetEase's stock has been raised from $135 to $140, despite the downgrade in rating [1]