NetEase Cloud MusicHKSE:09899 -1.00%72 Gross Margin % is 35.02% as of Dec. 2025, which is 327% above its 10-year median of 8.21. GuruFocus rates HKSE:09899 with a GF Score™ of 72/100 and a GF Value™ of HK$107.30 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 497 Interactive Media companies, NetEase Cloud Music ranks worse than 77.26% on this metric.
The historical rank and industry rank for NetEase Cloud Music's Gross Margin % or its related term are showing as below:
HKSE:09899'
s Gross Margin % Range Over the Past 10 Years
Min: -114.74 Med: 8.21 Max: 35.69
Current: 35.69
During the past 8 years, the highestGross Margin % of NetEase Cloud Music was 35.69%. The lowest was -114.74%. And the median was 8.21%.
HKSE:09899's Gross Margin % is ranked worse than 77.26% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs HKSE:09899: 35.69
NetEase Cloud Music had a gross margin of 35.02% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for NetEase Cloud Music was 0.00% per year.
NetEase Cloud Music (HKSE:09899) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
NetEase Cloud Music had a gross margin of 35.02% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
NetEase Cloud Music Gross Margin % Related Terms
NetEase Cloud Music Gross Margin % Historical Data
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The historical data trend for NetEase Cloud Music's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HKSE:09899 vs GOOGL, META, SPOT: Gross Margin % Comparison
For the Internet Content & Information subindustry, NetEase Cloud Music's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NetEase Cloud Music Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, NetEase Cloud Music's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NetEase Cloud Music's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
NetEase Cloud Music (HKSE:09899) has a Gross Margin % of 35.02% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on NetEase Cloud Music and its competitors. This is 327% above median its historical median of 8.21. According to the industry distribution chart, NetEase Cloud Music ranks #384 out of 497 companies in the Interactive Media industry, placing it in the top 77.3%.
Is NetEase Cloud Music's Gross Margin % too high?
NetEase Cloud Music's current Gross Margin % of 35.02% is 327% above median its 10-year median of 8.21. The Interactive Media industry median Gross Margin % is 62.58. NetEase Cloud Music's value of 35.02% is 44% below this industry median. Based on the distribution chart, NetEase Cloud Music ranks #384 out of 497 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, NetEase Cloud Music has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NetEase Cloud Music's Gross Margin % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, NetEase Cloud Music ranks #384 out of 497 companies for Gross Margin %. This places NetEase Cloud Music in the lower half of its industry. The industry median Gross Margin % is 62.58. NetEase Cloud Music's value of 35.02% is 44% below this benchmark. While the company's 10-year median is 8.21 vs. the industry median of 62.58, NetEase Cloud Music has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NetEase Cloud Music's current Gross Margin % of 35.02% is 44% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on NetEase Cloud Music and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetEase Cloud Music's current Gross Margin % is 35.02%, which is 327% above median its own 10-year median of 8.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetEase Cloud Music stock overvalued right now?
Based on GuruFocus' analysis, NetEase Cloud Music (HKSE:09899) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$107.30, compared to a current price of HK$119.30 — trading 11.2% above its estimated fair value. The current Gross Margin % is 35.02%, which is 327% above median its 10-year median of 8.21 and 44% below the Interactive Media industry median of 62.58. NetEase Cloud Music's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For NetEase Cloud Music (HKSE:09899), the current Gross Margin % is 35.02% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NetEase Cloud Music (HKSE:09899) Overvalued in 2026?
Based on GuruFocus' analysis, NetEase Cloud Music stock appears to be overvalued.
The current stock price of HK$119.30 is trading 11.2% above its estimated GF Value™ of HK$107.30.
GuruFocus considers NetEase Cloud Music to be Modestly Overvalued.
Key valuation signals for HKSE:09899:
Gross Margin %: 35.02% (327% above median its 10-year median of 8.21)
GF Value™: HK$107.30 vs. price of HK$119.30 (11.2% above fair value)
Industry Position: 44% below the Interactive Media median (#384 of 497)
No single metric tells the full story. See the HKSE:09899 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressNo. 353 Benjing Avenue, Room 1201, Block A, Hangzhou International Expo Center, Qianjiang Century City, Xiaoshan District, Zhejiang Province, Hangzhou, CHN
NetEase Cloud Music is China's second-largest music streaming platform, founded in 2013 as a subsidiary of NetEase. NetEase remains the controlling shareholder with a 59.4% stake. The company is headquartered in Hangzhou.The platform's business model revolves around a core music streaming service sold on a subscription basis, paired with a live streaming service where users purchase virtual items and gift them to performers.
72GF Score
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