South 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.
Chinese government partnerships
China’s Alibaba will offer payment services from rival Tencent on its biggest online marketplaces, a milestone toward breaking down the walls dividing Chinese internet giants. Alibaba best cryptocurrency payment gateways for 2023 will offer payment services from rival Tencent on its biggest online marketplaces, a milestone toward breaking down the walls that divide Chinese internet giants. Tencent had been a hallmark of consistent and sustainable growth, with an unbroken track record of growth since it went public in 2004. So when the tech company reported that its revenue and operating profit fell by 1% and 13%, respectively, in 2022, investors would have found it difficult to swallow. While China’s first AAA video game has bolstered industry confidence, Tencent backing and government favour are not accessible to everyone. A new video game title launched on Tuesday by a Tencent-backed startup has quickly become the most-played game on a major online platform, highlighting growing interest in Chinese-developed titles.
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. Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004.
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, 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.
When it comes to gaming, the use of ChatGPT-like generative artificial intelligence is still in an exploratory phase, according to Liang Chen, general manager of Tencent Cloud’s internet industry depa… China’s tech giants are reporting earnings this week, which Tencent, Alibaba and JD.com providing a snapshot of China’s economy and consumer sentiment. The Motley Fool owns and recommends Baidu, JD.com, and Tencent Holdings. Regulatory headwinds are throttling the Chinese tech giant’s growth. Tencent’s largest shareholder is Prosus (majority owned by Naspers), which owns 25.6% of new zealand dollar to swiss franc exchange rate all shares[2] and hence is the controlling shareholder.[283] However, Ma Huateng, co-founder of Tencent, still owns a significant stake (8.42%). Patient investors with investing horizons of more than five years should consider buying some shares.
That’s all speculation for now, but Ant Group (which owns WeChat Pay’s closest competitor, Alipay) was also probed by regulators and forced to restructure its business as a financial holding company last year. Tencent’s online advertising revenue, which accounted for 15% of its top line, tumbled 13% year over year to 21.5 billion yuan ($3.37 billion). By comparison, Baidu’s (BIDU -2.17%) online marketing revenue rose 1% year over year to 19.1 billion yuan ($3 billion) last quarter. Moreover, buying the stock at its current valuation poses no significant risk of permanent capital loss. As of writing, Tencent’s stock has a price-to-earnings ratio of 16.
Alibaba to allow Tencent’s WeChat Pay for Taobao and Tmall purchases in landmark deal
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.
TCEHY Stock News Headlines
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.
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.
Chinese tech giant Tencent’s quarterly profit jumps 82% as key gaming unit accelerates
- Like most Chinese stocks, Tencent Holdings (TCEHY -1.30%) has been on a rough ride in recent years.
- 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 …
- 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.
- Click the link below and we’ll send you MarketBeat’s list of ten stocks that will drive in any economic environment.
- Excluding that gain and other one-time benefits, Tencent’s adjusted net profit declined 25% to 24.88 billion yuan ($3.9 billion).
Since then, TCEHY stock has increased by 24.9% and is now trading at $47.20. Which stocks are likely to thrive in today’s challenging market? Click the link below and we’ll send you MarketBeat’s list of ten stocks that will drive in any economic environment. 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. Tencent’s net profit rose 60% to 94.96 billion yuan ($14.9 billion), but that was mainly driven by a massive sale of JD.com (JD -1.18%) shares last December.
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.
About MarketBeat
The international gaming business’ growth was supported by new content for Valorant and Clash Royale, an adjustment of its deferred revenue at mobile-game developer Supercell, and its consolidation of Warframe developer Digital Extremes. Tencent’s domestic gaming dukascopy vs dukascopy europe forex broker comparison business was once its main growth engine. But it’s sputtered out as the government has imposed tighter playtime restrictions for minors and temporarily suspended the approval of new games last year. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
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.