NetEase (NTES) stock was up on Tuesday after the video game publisher and developer divested Fantastic Pixel Castle. Fantastic Pixel Castle head Greg Street confirmed that the studio’s time as a first-party developer under NetEase had come to an end. Without support from NetEase, the company’s upcoming massively multiplayer online role-playing game (MMORPG), codenamed Ghost, is in danger of not being released.
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Street noted that NetEase didn’t just kick Fantastic Pixel Castle to the curb. Instead, the publisher went to great lengths to find another publisher that was interested in taking the developer in. However, that search didn’t bear fruit, and NetEase determined its best course of action was to divest Fantastic Pixel Castle. Now the studio has begun its own search to find a publisher or investor for Ghost.
Street discussed the NetEase divestment of Fantastic Pixel Castle in a LinkedIn post. He said, “If we’re unable to find a publisher soon, the reality is that the studio would likely close, and the entire team, leadership included, would be affected.”
NetEase Stock Movement Today
NetEase stock was up 2.08% on Tuesday, extending a 71.08% year-to-date rally. The shares have also climbed 82.05% over the past 12 months. The company has seen success with its Marvel Rivals online hero shooter, even though the game has lost a staggering 85% of its players since its debut in late 2024.
Is NetEase Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for NetEase is Strong Buy, based on 10 Buy and a single Hold rating over the past three months. With that comes an average NTES stock price target of $155.18, representing a potential 3.89% upside for the shares.
