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Alibaba Group and NetEase shares are showing technical signs of stabilization as Chinese equities attempt to bottom after a prolonged slump.

NetEase (NTES) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Investors interested in Internet - Software and Services stocks are likely familiar with NetEase (NTES) and Tyler Technologies (TYL). But which of these two stocks offers value investors a better bang for their buck right now?

NTES joins four peers in lifting dividends as resilient markets, rate-cut hopes and volatility spur investors toward steady income plays.

NetEase remains a Buy. Its Q4 2025 results were below expectations due to non-operational factors and delayed revenue recognition. NetEase's contract liabilities surged 34% YoY, signaling robust deferred revenue that is likely to be recognized in subsequent quarters. AI- and tax-related fears appear to be overstated, implying that the stock's 11% price pullback in the past two months is overdone.

NetEase, Inc. delivered modest 3% YoY revenue growth, driven by strong performance from self-developed games and new content updates. NTES benefited from higher-margin in-house titles and reduced reliance on licensed games, supporting profitability despite intensified competition from Tencent. Youdao and Cloud Music segments saw revenue gains from AI-driven personalization and premium memberships, though social entertainment revenue declined.

NTES posts a Q4 earnings miss as profits fall 24%, but revenues rise 7.5% on game strength and AI push, with a dividend declared as cash rises and titles grow.