Insider Monkey·2025-11-23 19:38Industry Overview - The Global Entertainment and Media (M&E) industry is projected to reach a market size of $3.5 trillion by 2029, driven by advancements in AI across various segments such as OTT Video, mixed reality, and internet advertising [1][2] - The US AI industry is significantly transforming the M&E sector, with generative AI investments reaching $56 billion in 2024, aimed at enhancing speed, scale, and creativity [2] - The US OTT Video segment is expected to grow at a Compound Annual Growth Rate (CAGR) of 5.9%, reaching $112.7 billion by 2029, while the US advertising market is projected to grow at a CAGR of 8.5% to $389.1 billion by 2029 [3] Company Highlights Roblox Corporation (NYSE:RBLX) - Roblox Corporation has a market capitalization of $71.41 billion and an analyst upside of 47.45%, with 75 hedge fund holders [7][8] - The company is implementing facial age checks for communication to enhance user safety, becoming the first online gaming platform to do so, following criticism regarding child safety [9][10] - Wall Street analysts maintain a positive outlook, with J.P. Morgan and Morgan Stanley reiterating Buy ratings without disclosing specific price targets [10] NetEase, Inc. (NASDAQ:NTES) - NetEase, Inc. has a market capitalization of $84.81 billion, an analyst upside of 14.95%, and 35 hedge fund holders [12][14] - For fiscal Q3 2025, NetEase reported an 8.2% year-over-year revenue growth to RMB28.4 billion ($4.0 billion), slightly below analyst expectations, while EPS of $2.09 met consensus [12][13] - Revenue growth was primarily driven by games and related services, which contributed 97.6% to total revenue, with notable success from self-developed games [13][14]