Tencent TCEHY Stock Price, News & Info The Motley Fool

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. As of mid-2024, shares of Tencent listed on the OTC Markets Exchange had delivered a 14.8% annualized total return over the past decade, outperforming the S&P 500 during that period (12.7% annualized total return). They enable companies to fund their operations and expansion.

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Tencent challenges Amazon and Microsoft’s cloud dominance by tapping into its WeChat ecosystem

1. Tencent’s (TCEHY -1.92%) stock recently tumbled after antitrust fears overshadowed its impressive fourth-quarter earnings.
2. You’ll then want to figure out how to allocate that money.
3. Finally, Daiwa America lowered shares of Tencent Music Entertainment Group from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 13th.
4. On the bright side, Tencent’s online advertising and fintech and business services segments generated accelerating revenue growth.
5. It also publishes some of the world’s most popular video games.
6. Intuit (INTU) slid to the downside after posting weak guidance.

Select to analyze similar companies using key performance metrics; select up to 4 stocks. Please bear with us as we address this and restore your personalized lists. Eric Volkman has no position in any of the stocks mentioned. TCEHY earnings call for the period ending December 31, 2023.

Tencent Holdings Ltd (TCEHY) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and …

According to MarketBeat.com, Tencent Music Entertainment Group has an average rating of “Moderate Buy” and an average price target of $13.28. It dominates China’s gaming and social media sectors, and analysts expect its revenue and earnings to rise 21% and 27%, respectively, this year. Those are high growth rates for a stock that trades at just 25 times forward earnings. Its communications and social services connect more than 1 billion people. It also publishes some of the world’s most popular video games. In addition, Tencent provides 10 big data management and business analytics tools you need to know about a range of services, including cloud computing, advertising, and financial technology.

How to Invest in Tencent

On a down note, Tencent said that its considerable investments into artificial intelligence (AI) have yet to pay off sufficiently. It is not yet producing meaningful revenue, and investors might have to wait several quarters for it to significantly boost earnings, too. The social media and gaming specialist essentially met the consensus analyst estimate for revenue. It beat on the bottom line, as those prognosticators following the stock were collectively modeling is day trading the right strategy for you 52.9 billion yuan ($7.3 billion) for that line item.

Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People’s Republic of China. Tencent’s social networking revenues, which include subscriptions and in-app purchases across its top social media platforms like WeChat, QQ, and Huya (HUYA -0.99%), rose 27% to 27.9 how to buy discover financial services stock billion yuan ($4.3 billion). That also marked a slowdown from its 29% growth in the third quarter.

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. 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 crackdowns on the online education and tech industries have severely impacted Tencent’s advertising and cloud income. 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 reported its third-quarter results after market hours on Wednesday, revealing that it managed to grow revenue by 8% year over year in the period to over 167 billion yuan ($23.1 billion). International Financial Reporting Standards (IFRS) net income saw a more impressive leap, rising by 47% to 53.2 billion yuan ($7.4 billion). However, investing in a Chinese company like Tencent is riskier than investing in a U.S.-listed stock. Investors need to carefully consider the added risks before adding Tencent to their portfolio. Tencent didn’t have an upcoming stock split as of mid-2024. The company has split its stock once since its public listing.

The internet and technology company reported $80.6 billion in total revenues in 2023, up 10% from 2022. Its profit attributable to equity holders after stripping out one-time or non-cash items was $22.3 billion, a 36% increase from 2022. Even after including those items, Tencent posted $16.3 billion of profit attributable to equity holders in 2023 (although that was down 39% from 2022’s level). Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Progeny 3 Inc. purchased a new position in shares of Tencent Music Entertainment Group during the second quarter valued at $11,436,000.

Apple reveals App Store revenue share in China as Huawei rivalry grows

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. One was that the company had become gigantic, generating 555 billion yuan  ($79.6 billion) in revenue in 2022.

In March 2024, the company proposed to increase its annual dividend based on its 2023 results by 42% to HKD3.40 per share ($0.43 per share). Anyone interested in investing in the Chinese e-commerce stock will need to take a few steps before becoming a shareholder. This four-step guide will show you how to invest in stocks and add Tencent to your portfolio. Julia Pan of UOB Kay Hian says a landmark cooperation between WeChat Pay and other e-commerce sites will help boost Tencent’s transaction volumes, boding well for the tech giant’s fintech business dow… Tencent’s plans to merge Huya with DouYu (DOYU 5.25%) to create China’s top game-streaming platform — which would strengthen its social networking business — also faces antitrust scrutiny.