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. Alibaba’s shopping platforms Taobao and Tmall will accept Tencent’s WeChat Pay likely within this month, a source familiar with the matter told CNBC. South Africa’s Naspers said on Monday its full-year earnings more than doubled, buoyed by improved performance of its e-commerce businesses and contribution from China’s Tencent , which accounts for t… Shares in Tencent, like much of the rest of Chinese tech, have been slammed since Beijing began a crackdown on technology companies in late 2020. The Beijing Central Axis is now ready for digital visitors from around the world SHENZHEN, China , July 27, 2024 /PRNewswire/ — Tencent (0700.HK) today launched the largest virtual urban historical l… Payments firm Airwallex is nearing an annual revenue run rate of $500 million after seeing significant growth in its North American and European businesses, CEO Jack Zhang told CNBC.
Fortunately, it is the only game in town, and it could keep that position for a while. 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. According to a report from CNBC-TV18, Tencent is expected to sell 2.1% stake or 9.7 million shares in the company via a large block deal tomorrow.
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.
Chinese e-commerce giant Alibaba’s domestic platforms, Taobao and Tmall, will begin accepting payments from Tencent’s WeChat pay, according to a source familiar with the matter. That progress is encouraging, but Tencent’s overseas business could also face regulatory headwinds. India’s regulators have already banned Tencent’s games along with dozens of other Chinese apps, while the Committee on Foreign Investment in the United States has been closely scrutinizing learn how to trade the market in 5 steps 2020 Tencent’s stakes in American gaming companies. Outside of companies subsidiary of its game division, Tencent as a whole has many major and minor investments in domestic and, since the 2010s, foreign game companies.
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 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.
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 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 the role of a java developer 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.
- 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’s largest shareholder is Prosus (majority owned by Naspers), which owns 25.6% of all shares[2] and hence is the controlling shareholder.[283] However, Ma Huateng, co-founder of Tencent, still owns a significant stake (8.42%).
- Tencent’s 2022 results might have disappointed its longtime shareholders, but make no mistake.
- In 2023, they expect its revenue and net income to rise 17% and 27%, respectively.
Excluding that gain and other one-time benefits, Tencent’s adjusted net profit declined 25% to 24.88 billion yuan ($3.9 billion). Investing in the Chinese tech giant now might be a smart move. Tencent’s profitability has grown due to aggressive monetization and cost-cutting.
2010: Founding and growth
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 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.
The Shenzhen-based social media and entertainment conglomerate also controls another 16% stake in Nio’s ADSs through three of its units. The only bright spot in Tencent’s report was its fintech and business services segment, which houses WeChat Pay, Tencent Cloud, and its other cloud-based services. Its revenue rose 25% year over year to 48 billion yuan british pound makes push ahead vs euro dollar as boe looms for sterling rates ($7.5 billion), or 33% of its top line, as the use of its digital payment and cloud-based business services soared across multiple industries. Tencent’s social-networks business generated stable growth through in-app purchases on its livestreaming platforms as well as premium subscription sales on Tencent Video and Tencent Music Entertainment Group. However, all of those platforms could still struggle to expand in the saturated streaming-media market.
Alibaba Stock Has Languished While Tencent Has Soared. One Reason Why.
While the Chinese government’s new direction will not directly weaken Tencent’s competitive advantage (more on this later), it certainly puts its future profitability at risk. Unfortunately, political risks are unavoidable when investing in Chinese companies. Many hope that the move could lure more consumers from rival platforms that already accept a variety of payment methods.
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Products and services
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.
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.
