Tencent TCEHY Stock Price, News & Analysis

After its share price reached an all-time high of nearly $100 in 2021, it lost almost three-quarters of its value, and it’s still down by more than half. Alibaba’s shopping platforms Taobao and Tmall will accept Tencent’s WeChat Pay likely within this month, a source familiar with the matter told CNBC. South Africa’s Naspers said on Monday its full-year earnings more than doubled, buoyed by improved performance of its e-commerce businesses and contribution from China’s Tencent , which accounts for t… Shares in Tencent, like much of the rest of Chinese tech, have been slammed since Beijing began a crackdown on technology companies in late 2020. The Beijing Central Axis is now ready for digital visitors from around the world SHENZHEN, China , July 27, 2024 /PRNewswire/ — Tencent (0700.HK) today launched the largest virtual urban historical l… Payments firm Airwallex is nearing an annual revenue run rate of $500 million after seeing significant growth in its North American and European businesses, CEO Jack Zhang told CNBC.

While the Chinese government’s new direction will not directly weaken Tencent’s competitive advantage (more on this later), it certainly puts its future profitability at risk. Unfortunately, political risks are unavoidable when investing in Chinese companies. Many hope that the move could lure more consumers from rival platforms that already accept a variety of payment methods.

Therefore, investors who expect Tencent to offset the slower growth of its gaming business with the expansion of its fintech business could be sorely disappointed. Tencent generated 50% of its revenue from its value-added services (VAS) segment, which is split between its domestic video games, international video games, and nonadvertising social and streaming media services. Its VAS revenue rose 7% year over year to 71.9 billion yuan ($11.3 billion) during the quarter, compared to its 8% growth in the third quarter and 28% growth in the year-ago quarter. That slowdown was mainly caused by the sluggish growth of its domestic gaming and social network businesses, which largely offset the stronger growth of its international gaming business.

The Shenzhen-based social media and entertainment conglomerate also controls another 16% stake in Nio’s ADSs through three of its units. The only bright spot in Tencent’s report was its fintech and business services segment, which houses WeChat Pay, Tencent Cloud, and its other cloud-based services. Its revenue rose 25% year over year to 48 billion yuan ($7.5 billion), or 33% of its top line, as the use of its digital payment and cloud-based business services soared across multiple industries. Tencent’s social-networks business generated stable growth through in-app purchases on its livestreaming platforms as well as premium subscription sales on Tencent Video and Tencent Music Entertainment Group. However, all of those platforms could still struggle to expand in the saturated streaming-media market.

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South net developer job descriptions salary and interview questions Korean gaming company Shift Up is set to price its initial public offering (IPO) at the top end of its price band and raise $313 million, according to a source with direct knowledge of the matte… Tencent’s revenue has seen a significant boost, thanks to the strong performance of their game Dungeon Fighter Mobile. According to one analyst, the rating for TCEHY stock is “Buy” and the 12-month stock price forecast is $46.0. Sign up for MarketBeat All Access to gain access to MarketBeat’s full suite of research tools.

1. Tencent had been a hallmark of consistent and sustainable growth, with an unbroken track record of growth since it went public in 2004.
2. New Rank-Based ScoringMarketRank™ is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company’s weighted average against that of other companies.
3. Since then, TCEHY stock has increased by 24.9% and is now trading at $47.20.

But the bigger culprits were external factors such as China’s economic weakness, which was caused in part by that nation’s extended and strict COVID lockdowns. Other Chinese government policies also hurt Tencent’s financials in 2022. For example, its regulatory the best forex affiliate programs of 2022 crackdowns on the online education and tech industries have severely impacted Tencent’s advertising and cloud income.

Tencent Holdings Ltd’s newly launched “Dungeon & Fighter” (DnF Mobile) has got off to a strong start, dominating top-grossing charts on Apple’s iOS platform in China for nearly a month, industry data … Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Besides, in the name of common prosperity, the government has indirectly extracted 100 billion yuan (about $15.5 billion) from Tencent.

Overall MarketRank™

Tencent’s stock looks reasonably valued at 22 times forward earnings, but it probably won’t rally until its domestic gaming business stabilizes, its advertising business recovers, and its fintech business avoids Ant Group’s fate. For now, investors should avoid Tencent and stick with more-promising growth stocks in this challenging market. Those moves indicate the Chinese government doesn’t want private digital-payment platforms to overpower state-backed banks.

Besides, that existing metric doesn’t consider the value of the vast investment portfolio ($117 billion ) the company owns. Adjusting for these investments would result in an even lower price-to-earnings ratio. With its dominant market position, Tencent has plenty of opportunities to profit from its captive users. To keep making money from its ecosystem, all it has to do is ensure that it remains the preferred communication platform in China.

Chinese Stocks Fall on Disappointing Economic Growth

Tencent’s 2022 results might have disappointed its longtime shareholders, but make no mistake. One was that the company had become gigantic, generating 555 billion yuan  ($79.6 billion) in revenue in 2022. It is quite natural for a company of that size to find it challenging to sustain high growth rates. While its shareholders suffered during that period, contrarian investors can consider its aftermath an opportunity to buy shares of one of the best companies in China for cheap. Like most Chinese stocks, Tencent Holdings (TCEHY -1.30%) has been on a rough ride in recent years.

The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China. With 1.3 billion monthly active users (MAU), its user base includes almost everyone in China. And they use it not only for communication but also to access services such as online payments, improve your price action trading with velocity and magnitude ride-sharing, public transportation, entertainment, online gaming, and more. In a way, it’s almost impossible for an average Chinese citizen to live in China without using WeChat and its ecosystem of services.

China’s Tencent Holdings reported a 8% rise in second-quarter revenue on Wednesday, driven by a recovery in its gaming business after a launch of a new mobile game in May that got off to a strong star… Tencent blamed that slowdown on China’s regulatory crackdown on online education, gaming, and internet service companies, all of which had advertised heavily on WeChat and Tencent’s streaming media services. Chinese internet giant Tencent announced on Wednesday an 82 percent surge in second-quarter net profit, its biggest jump since late 2020, after a resurgence in its gaming business. Chinese tech giant Alibaba said on Wednesady that its core Taobao and Tmall e-commerce platforms will now allow payment through Tencent’s WeChat app for the first time. However, this business could also be targeted by regulators soon. The government has reportedly been probing the use of WeChat Pay in money-laundering schemes, and it might be pressured to spin off the fintech business into a holding company where it can be tightly regulated.

Fortunately, it is the only game in town, and it could keep that position for a while. On a slightly positive note, Tencent has somewhat recovered from its 2022 woes. It delivered respectable first-quarter 2023 results, with revenue and operating profit up by 11% and 9%, so the worst is probably over for the company. According to a report from CNBC-TV18, Tencent is expected to sell 2.1% stake or 9.7 million shares in the company via a large block deal tomorrow.

Alibaba’s E-Commerce Platforms Now Accept WeChat Payments, Aiming for Market Expansion in China

Usually, shares of a company of Tencent’s caliber won’t come cheap. But this stock — still down by more than half from its 2021 peak — is currently trading at a reasonable valuation. In other words, Tencent has twin engines of internal business and external investments to keep its growth machine humming. If that’s not enough, Tencent has proven to be an excellent tech investor, having bought stakes early on in what have become some of the region’s most prominent companies.

Chinese e-commerce giant Alibaba’s domestic platforms, Taobao and Tmall, will begin accepting payments from Tencent’s WeChat pay, according to a source familiar with the matter. That progress is encouraging, but Tencent’s overseas business could also face regulatory headwinds. India’s regulators have already banned Tencent’s games along with dozens of other Chinese apps, while the Committee on Foreign Investment in the United States has been closely scrutinizing Tencent’s stakes in American gaming companies. Outside of companies subsidiary of its game division, Tencent as a whole has many major and minor investments in domestic and, since the 2010s, foreign game companies.