Keep an Eye on the ‘Others’
| Symbol | Last Price | Change | % Change |
| BIDU Baidu, Inc. | 133.24 | -9.63 | -6.74% |
| FB Meta Platforms, Inc. | 196.64 | +0.99 | +0.51% |
| JD JD.com, Inc. | 58.80 | -2.71 | -4.41% |
| TCEHY Tencent Holdings Limited | 46.77 | -2.68 | -5.42% |
Full Answer
Is Tencent Holdings the perfect stock for investors?
Tencent Holdings ( OTC:TCEHY) stock has been a big winner for shareholders, up 3,200% over the last 10 years. The Chinese tech giant has benefited from China's thirst for online entertainment in recent years, including social networks, gaming, streaming services, and cloud services.
What are Wall Street analysts'target prices for Tencent's shares?
11 Wall Street analysts have issued twelve-month target prices for Tencent's shares. Their forecasts range from $60.18 to $510.00. On average, they expect Tencent's share price to reach $167.41 in the next twelve months. This suggests a possible upside of 187.2% from the stock's current price.
Should you buy Tencent stock after its 30% rally?
But top tech companies like Tencent, Alibaba, and Baidu will more likely reach a compromise with U.S. regulators instead of staging a full retreat to closer exchanges like Hong Kong. Therefore, Tencent remains a solid long-term investment, and it has room to run after its 30% rally over the past 12 months.
What are the price targets for Tencent holding/ADR's stock?
8 brokers have issued 1 year price targets for TENCENT HOLDING/ADR's stock. Their forecasts range from $54.00 to $400.00. On average, they expect TENCENT HOLDING/ADR's share price to reach $227.00 in the next twelve months.
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Is Tencent stock undervalued?
Morningstar's analyst says the market is overlooking the company's long-term revenue opportunities.
Why is Tencent stock so low?
Tencent's stock suffered a sharp drop after the company reported its slowest-ever growth due to a bruising crackdown by China on the country's tech sector. Shares in the Chinese social media and gaming giant tumbled around 6% in Hong Kong on Thursday after its US-listed shares closed 5.4% lower on Wall Street.
Is it good to invest in Tencent stock?
Analysts expect Tencent's revenue to rise 13% in 2022, but for its net profit to decline 37% as it laps the JD divestment. In 2023, they expect its revenue and net income to rise 17% and 27%, respectively.
How high can Tencent stock go?
The 53 analysts offering 12-month price forecasts for Tencent Holdings Ltd have a median target of 57.35, with a high estimate of 76.46 and a low estimate of 37.72. The median estimate represents a +23.59% increase from the last price of 46.40.
Why are Chinese stocks crashing?
Chinese stocks were tumbling Monday, extending a selloff from last week amid pressures on multiple fronts, including Covid-19 lockdowns in China and regulatory threats on both sides of the Pacific. Shares in some of the country's largest companies saw stark declines.
What is the intrinsic value of Tencent stock?
As of today (2022-06-04), Tencent Holdings's Intrinsic Value: Projected FCF is $40.89. The stock price of Tencent Holdings is $45.99.
Is Tencent or Alibaba better?
In conclusion, despite Alibaba's ability to tap into different customer bases over the past 5 years, we believe Tencent is the better company to invest in. The key deciding factor was its revenue diversification, meaning its income is more stable and less likely to be drastically impacted by regulatory changes.
Will Chinese stocks be delisted?
How soon could Chinese companies be delisted? Nothing is going to happen this year or even in 2023, which explains why markets initially took the possibility in their stride. Under the HFCAA, a company would be delisted only after three consecutive years of non-compliance with audit inspections.
What stocks does Tencent own?
It operates the instant messengers Tencent QQ and WeChat, and QQ.com. It also owns Tencent Music. The company surpassed a market value of US$500 billion in 2018, becoming the first Asian technology company to cross this valuation mark.
Is Tencent a buy sell or hold?
Tencent has received a consensus rating of Hold. The company's average rating score is 2.33, and is based on 3 buy ratings, 3 hold ratings, and 2 sell ratings.
What is the target price for Tencent?
Stock Price TargetsHigh$76.46Median$57.35Low$37.72Average$58.30Current Price$46.40
What is the future of Tencent?
Analysts expect Tencent's revenue to grow 18% in 2021 and 15% in 2022. They expect its earnings per share to dip slightly in both years as it expands its lower-margin cloud and fintech businesses while grappling with the slowing growth of its higher-margin video game business.
When did Tencent stock split?
May 15, 2014Discover splits history data for Tencent Holdings Ltd share. Find the split ratio of 0700 for a selection of dates. The data can be shared or downloaded....0700 Splits.Split dateSplit RatioMay 15, 20141/5 Stock Split
How do I invest in Tencent?
How to buy shares in Tencent Holdings Ltd ADRCompare share trading platforms. Use our comparison table to help you find a platform that fits you.Open your brokerage account. Complete an application with your details.Confirm your payment details. ... Research the stock. ... Purchase now or later. ... Check in on your investment.
How can I buy Tencent?
How to buy shares in TencentCompare share trading platforms. ... Open and fund your brokerage account. ... Search for Tencent. ... Purchase now or later. ... Decide on how many to buy. ... Check in on your investment.
How much will Tencent's sales grow in 2020?
Annual sales are forecasted to grow from $74 billion in 2020 to $243 billion in fiscal 2030, which equates to a growth rate of 13% a year. Growth will, in relative terms, be front-loaded, according to estimates. This makes sense, of course, as the law of large numbers tells us that growing revenue by 20% is easier from a $74 billion base compared to a $220 billion base. Nevertheless, even accounting for some growth deceleration, analysts expect that Tencent will continue to grow meaningfully throughout the 2020s, with revenue growth still forecasted at an attractive high-single-digit pace in 2029.
What is tencent tech?
Tencent is a tech company that is offering a wide range of services, products, and solutions to its customers and users. Its businesses are all active in high-growth markets, and Tencent usually holds the number 1 or number 2 position in its respective markets. The combination of these factors results in a wide moat around Tencent's operations, and the company is well-positioned to generate a lot of shareholder value in the long run while monetizing its vast and growing user base and building out additional business lines where it sees potential.
Does Tencent outperform analyst estimates?
It should be noted that Tencent has historically outperformed analyst estimates most of the time, as can be seen here, with Tencent beating EPS estimates during almost every quarter. If this trend holds true, Tencent might be able to outperform current analyst estimates, and actual growth might be higher compared to what we have assumed in the above scenario.
Does Tencent have leverage?
In the above table, we see that Tencent was able to grow its profits significantly faster than its revenues over the last year, which is the result of operating leverage. As its user count and revenues grow, operating expenses do not grow in line with sales, which allows Tencent to grow its profits somewhat faster than its revenues. The same can, at least to some degree, be expected in the coming years as well, which is why profits and EPS should grow slightly faster than sales in the long run.
Is Tencent a leader in online gaming?
Tencent also is the market leader in online gaming via its gaming platform , which positions the company well for capitalizing on the high growth rates in the global gaming market. Tencent primarily benefits through its platform model that allows Tencent to take a cut when games by other publishers are sold, but the company has also been building out its own content, through organic investments and takeovers.
Is Tencent growing?
Tencent is growing fast and holds a great position in high-growth markets.
Is Tencent a social media company?
Tencent's biggest business unit is what it calls Communication & Social, through which it operates WeChat/Weixin. What was once a social messenger comparable to WhatsApp has turned into an offering of many different services, including mobile payments system WeChat Pay, somewhat similar to Apple Pay. Tencent is the number one player in its home market easily, although it should be noted that its user count outside of China is less tremendous. Still, thanks to strong economic growth in China, a massive population in the country, and ongoing growth in the country's middle class, a dominating market position in China alone is already more than suitable for WeChat to remain a massive cash cow that continues to generate compelling growth.
Is Tencent a winner?
Tencent Holdings ( OTC:TCEHY) stock has been a big winner for shareholders, up 3,200% over the last 10 years. The Chinese tech giant has benefited from China's thirst for online entertainment in recent years, including social networks, gaming, streaming services, and cloud services. As a kicker, the company is also one of the largest mobile payment providers.
Is Tencent a mobile payment provider?
As a kicker, the company is also one of the largest mobile payment providers. Tencent is No. 1 in China based on active users across all of these areas, think of the company as a combination of Netflix, PayPal Holdings, Alphabet, Facebook, Spotify Technology, and video game maker Activision Blizzard, all wrapped up in one.
Does Tencent own Epic Games?
Tencent also has a minority stake in Epic Games, the maker of Fortnite -- the most popular game in the world right now -- which has grossed over $1 billion in revenue less than a year after its release, according to SuperData.
1. Tencent's business model is diverse, and mostly out of the crosshairs, for now
Outside of its huge investment portfolio, which totaled $224 billion as of the end of June, Tencent's four core businesses are video games, social media, fintech, and cloud computing (with some traditional streaming video and music thrown in).
2. Tencent has always undermonetized its platforms
A big overarching theme of the regulatory crackdown is to make a more equitable economy in China, so that wealth does not flow to just a few elites or a few elite companies.
3. Tencent could be developing an enterprise software giant right under our noses
The most compelling long-term growth driver for Tencent could very well be its ascendant cloud computing business. Although the company currently combines its cloud segment with its fintech segment, that "fintech and business services" segment grew 40% last quarter, the fastest-growing segment today, and now almost as large as the gaming segment.
4. Foreign holdings are significant
Fourth, no matter what happens inside China, Tencent actually has a fairly significant amount of foreign assets and revenue. As stated before, international revenue now accounts for a quarter of total gaming revenue, and is growing fast.
5. Tencent just repurchased shares, a rarity for the company
Finally, an announcement Thursday and Friday might have slipped under the noses of investors. Specifically, Tencent repurchased 180,000 of its own shares on Thursday and 240,000 shares on Friday, the two days after its second-quarter earnings report.
Be cautious, but opportunity looms
Due to the uncertainty in China, it is probably a good idea to have a hard limit on your allocation to Chinese stocks; but if you have no or only a small amount of Chinese exposure, Tencent's stock could be an excellent long-term opportunity today.
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What is Tencent's business?
Follow him on Twitter for more updates! Tencent ( OTC:TCEHY) is one of the largest tech companies in China. It owns WeChat, the country's top messaging app; the world's largest game publishing business; China's second-largest cloud platform; one of the country's largest video streaming platforms; and one of its top digital payment platforms.
What is Tencent Cloud?
Tencent's fintech and business services unit, which accounted for 24% of its top line last quarter, generates most of its revenue from Tencent Cloud, China's second-largest cloud infrastructure platform after Alibaba Cloud, and WeChat Pay, which shares a near-duopoly in the payments market with Alibaba-backed AliPay.
What games does Tencent still lock in?
Tencent's gaming business, which generated 35% of its revenue last quarter, is still locking in gamers with hit games like Honor of Kings, Peacekeeper Elite, PUBG Mobile, and League of Legends . Its revenue grew 31% annually during the quarter as people played more games throughout the lockdown period.
Is Tencent better than Alibaba?
Tencent is also better diversified than Alibaba and Baidu, which still rely heavily on e-commerce sales and online ads, respectively. The only near-term threat to Tencent is the legislative threat to potentially delist Chinese stocks from U.S. exchanges if they don't follow certain accounting rules.
Will Tencent and Alibaba incur more losses?
Both companies will likely incur more losses in their cloud businesses, and use other profitable businesses -- like Tencent's ad and gaming units, and Alibaba's core commerce unit -- to subsidize the difference.
Is it the right time to buy Tencent?
That's a solid growth rate for a stock that trades at about 33 times forward earnings.
Key Parts of Tencent's Business
Two Other Exciting Markets
- In recent years, China has become the epicenter of mobile payments and video games, and Tencent is perfectly positioned in both of these red hot markets. In 2016, China surpassed the U.S. to become the largest gaming market in the world. Competitive gaming and watching esports have become very popular activities in China, and Tencent has an economic interest in some of t…
What About Valuation?
- The company has managed to grow revenue at a compound annual rate of 41% per year over the last four years, and it is incredibly proftiable -- net profits and operating cash flow have grown right in line with revenue over the years. For that torrid growth, investors usually have to pay up, but the shares of Tencent trade at a forward P/E of 25, mor...