NetEase, Inc (NTES.US): BlizzCon 2026 Positive Read Across

Blizzard unveiled a multi-year content pipeline at BlizzCon 2026. The most notable near-term addition is World of Warcraft: Forever, a new permanent WoW experience alongside Modern and Classic, scheduled to launch globally on November 4, 2026. It also updated the Diablo franchise, with a new Amazon class pack for Diablo IV due in 1H27 and Diablo V for Spring 2029. Longer term, it is reviving the StarCraft franchise with a new open-world shooter targeted for Spring 2030. Overwatch continues to shift toward a higher-frequency annual live-service model, while Hearthstone will introduce Monk in March 2027, its first new playable class in six years. Although it is unclear when these new versions/updates will be introduced in China by NetEase, we view it as a major positive enriching NetEase's future game pipeline. We remain Overweight on NetEase, with a US$163 price target (38% upside to the US$117.99 close).