Tencent Holdings Limited TCEHY Stock Price, Quote & News

The consensus among Wall Street equities research analysts is that investors should “moderate buy” TCEHY shares. Get stock recommendations, portfolio guidance, Technical analysis tools and more from The Motley Fool’s premium services. Patient investors with investing horizons of more than five years should consider buying some shares.

1. For example, emerging markets stocks did quite well in the “lost decade” for USA stocks between 2000 and 2010.
2. Tencent (TCEHY 0.19%) posted its third-quarter earnings report on Nov. 16.
3. Their ownership of Supercell and Riot Games also gives them exposure to Clash Royale (#1 strategy), Clash of Clans (#5 strategy), and League of Legends (#28 strategy).
4. During the conference call, President Martin Lau predicted its advertising business would start growing year over year again in “late 2022” as it monetizes more in-feed video ads and benefits from the gradual stabilization of the gaming, e-commerce, and fast-moving consumer goods markets.

Besides, that existing metric doesn’t consider the value of the vast investment portfolio ($117 billion ) the company owns. Adjusting for these investments would https://www.topforexnews.org/brokers/fresh-forex-reviews-and-user-ratings/ result in an even lower price-to-earnings ratio. If Tencent operated in the USA, it would pretty much be a no brainer buy, especially at its current price.

Upgrade to MarketBeat All Access to add more stocks to your watchlist. As of February 29th, there was short interest totaling 3,119,400 shares, a drop of 26.7% from the February 14th total of 4,257,300 shares. Based on an average trading volume of 5,650,200 shares, the short-interest ratio is currently 0.6 days. 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.

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. Tencent Holdings’ Riot Games plans to lay off 530 employees, or about 11% of staff globally, the online gaming company said on Monday in a blog that included a letter to staff from CEO Dylan Jadeja. China’s central bank has approved Tencent Holdings’ online payment platform Tenpay boosting its registered capital to 15.3 billion yuan ($2.13 billion), according to a central bank statement on Friday…

Other Chinese government policies also hurt Tencent’s financials in 2022. For example, its regulatory crackdowns on the online education and tech industries have severely impacted Tencent’s advertising and cloud income. Like most Chinese stocks, Tencent Holdings (TCEHY 0.19%) has been on a rough ride in recent years. 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. Beijing has quietly pulled the proposed curbs on the video game industry from the official website, weeks after the draft guidelines wiped tens of billions of dollars off the market value of local tit…

2020: Continued investments

The company’s revenue is arguably more diversified but as fast growing as the tech giants in the USA, and its investment portfolio is one of the largest in the world. Like Apple and Google, Tencent also has a suite of first party apps within WeChat that allow users to do things like pay friends/merchants, pay utilities and phone bills, call a taxi, order food delivery, buy movie tickets, do online shopping, talk to a doctor, read news, meet strangers, play games etc. China’s Tencent has taken over two ByteDance video games units after ByteDance retreated from the gaming business last year, according to a person familiar with the matter. As Tencent’s revenue growth stalls out, it’s divesting its non-core assets and reining in its operating expenses. That’s why it divested most of its stake in JD.com to its investors in the form of a special dividend earlier this year, and why it plans to do the same to its stake in the food delivery giant Meituan. That stabilization should allay some near-term fears regarding the segment, which was initially expanded through a restructuring four years ago to reduce the company’s dependence on video games.

Tencent has also partnered with Nintendo to distribute Nintendo’s console and games within China. International gaming revenue now represents 25% of Tencent’s online games revenue and it’s growing faster than domestic games revenue. Pony Ma, chief executive and co-founder of Tencent Holdings , has said that the company’s video games business faces great challenges from competitors but is catching up in artificial intelligence (AI… Tencent generated 31% of its third-quarter revenue from its video game business.

Chinese government partnerships

On the other hand, USA stocks have done very well since then while emerging markets have nearly had a lost decade of their own. Tencent halted the development of a highly anticipated mobile game based on Square Enix’s “Nier” franchise in December, according to three people with knowledge of the matter, marking a setback in the… Tencent’s largest shareholder is Prosus (majority owned by Naspers), which owns 25.6% of all shares[286][2] and hence is the controlling shareholder.[287] However, Ma Huateng, co-founder of Tencent, still owns a significant stake (8.42%).

To keep making money from its ecosystem, all it has to do is ensure that it remains the preferred communication platform in China. Fortunately, it is the only game in town, and it could keep that position for a while. Tencent’s 2022 results might have disappointed its longtime shareholders, but make no mistake.

U.S. executive order on WeChat

Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People’s Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. In addition, the company operates innovation business, which includes artificial intelligences; and discover and develops enterprise and next-generation technologies for food production, energy, and water management application.

Domestic games, which include its blockbuster game Honor of Kings, accounted for 73% of that total. The remaining 27% came from overseas hits like League of Legends, Valorant, and PUBG Mobile. As of writing, Tencent’s stock has a price-to-earnings ratio of 16.

As a result, Tencent’s total VAS (value-added service) revenue — which includes its gaming divisions, social media platforms, and streaming media subscriptions — declined by 3% in the third quarter but still accounted for more than half of its top line. This core business might gradually https://www.forex-world.net/currency-pairs/usd-huf/ stabilize as Tencent expands its international gaming business, but it will likely remain under intense pressure as long as the Chinese government continues to scrutinize the gaming industry. With 1.3 billion monthly active users (MAU), its user base includes almost everyone in China.