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 Video: What is a Stock Split?
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| NetEase Inc is a China-based technology company. Co. operates through four business segments. The Games and Related Value-added Services segment is engaged in development and sales of mobile game, personal computer (PC) games, operation of games and other value-added services, including in-game virtual items and prepaid points. The Youdao segment provides learning services, smart devices and online marketing services. Its products and services include online courses and digital content services. According to our NTES split history records, NetEase has had 2 splits. | |
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NetEase (NTES) has 2 splits in our NTES split history database. The first split for NTES took place on March 28, 2006. This was a 4 for 1 split, meaning for each share of NTES owned pre-split, the shareholder now owned 4 shares. For example, a 1000 share position pre-split, became a 4000 share position following the split. NTES's second split took place on October 02, 2020. This was a 5 for 1 split, meaning for each share of NTES owned pre-split, the shareholder now owned 5 shares. For example, a 4000 share position pre-split, became a 20000 share position following the split.
When a company such as NetEase splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business.
Looking at the NTES split history from start to finish, an original position size of 1000 shares would have turned into 20000 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into NetEase shares, starting with a $10,000 purchase of NTES, presented on a split-history-adjusted basis factoring in the complete NTES split history.
Growth of $10,000.00
With Dividends Reinvested
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| Start date: |
06/14/2016 |
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| End date: |
06/12/2026 |
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| Start price/share: |
$32.89 |
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| End price/share: |
$125.82 |
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| Starting shares: |
304.04 |
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| Ending shares: |
364.75 |
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| Dividends reinvested/share: |
$15.72 |
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| Total return: |
358.93% |
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| Average Annual Total Return: |
16.46% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$45,895.26 |
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| Years: |
10.00 |
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Growth of $10,000.00
Without Dividends Reinvested
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| Start date: |
06/14/2016 |
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| End date: |
06/12/2026 |
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| Start price/share: |
$32.89 |
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| End price/share: |
$125.82 |
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| Dividends collected/share: |
$15.72 |
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| Total return: |
330.36% |
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| Average Annual Total Return: |
15.71% |
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| Starting investment: |
$10,000.00 |
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| Ending investment: |
$43,023.82 |
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| Years: |
10.00 |
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| Date |
Ratio |
| 03/28/2006 | 4 for 1 | | 10/02/2020 | 5 for 1 |
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