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.
Tencent Holdings Ltd (TCEHY) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and …
- Tencent had been a hallmark of consistent and sustainable growth, with an unbroken track record of growth since it went public in 2004.
- With 1.3 billion monthly active users (MAU), its user base includes almost everyone in China.
- Morgan Stanley downgraded Tencent Music Entertainment Group from an “overweight” rating to an “equal weight” rating and lowered their price target for the company from $15.00 to $13.00 in a report on Wednesday, September 25th.
- With its dominant market position, Tencent has plenty of opportunities to profit from its captive users.
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.
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Tencent reported its third-quarter results after market hours on Wednesday, revealing that it so ..money does grow on trees after all 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.
Earnings Per Share
In March 2024, the company proposed to increase its annual dividend what is home equity and how does it work 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.
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 billion yuan ($4.3 billion). That also marked a slowdown from its 29% growth in the third quarter.
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.
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.
According to MarketBeat.com, Tencent Music Entertainment Group has an average rating of “Moderate Buy” and an average price 11 beginner tips for learning python programming 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 a range of services, including cloud computing, advertising, and financial technology.
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 52.9 billion yuan ($7.3 billion) for that line item.