Tencent TCEHY Stock Price, News & Info The Motley Fool

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. Like most Chinese stocks, Tencent Holdings (TCEHY -1.92%) has been on a rough ride in recent years.

Why Tencent Holdings Stock Triumphed Today

Video gaming sales, traditionally Tencent’s strongest revenue driver, grew 14% in the domestic market. Investors are awaiting a flurry of earnings cards from bellwether companies including JD.com, Alibaba and Tencent. Intuit (INTU) slid to the downside after posting weak guidance. The company’s CEO shrugged off the idea that the Trump administration could create a free tax-filing app.

Tencent Holdings Limited Overview Internet Content & Information / Communication Services

Excluding those gains, its adjusted net profit still increased 30% to 33.2 billion yuan ($5.1 billion). If that’s not enough, Tencent has proven to be an excellent tech investor, having bought stakes early on in what have become some of the region’s most prominent companies. Pinduoduo, JD.com, Meituan, and Sea are just some examples. Investing in the Chinese tech giant now might be a smart move. E-commerce continue to grow, and these companies are on the front lines.

Financial Performance

These catalysts could enable the company to continue growing its profits and shareholder value in the future. 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.

Performance Overview: TCEHY

Tencent has been acquiring stakes in more gaming studios to expand the business, but its inorganic growth strategy could be derailed by China’s antitrust regulators — which recently fined Tencent over unapproved acquisitions. China could also further tighten its rules for licensing games, as it did over the past three years, and make it tougher for Tencent to launch new games as its top titles mature. Reddit shares recently were down more than 8% but still nearly triple the $50.44 price where the stock closed on its first day of trading following its initial public offering (IPO) in March. The company sold just over 650,000 shares earlier this week, bringing the company’s stake to about 7.7 million shares, down from roughly 10.7 million shares earlier this 3 Best Forex Liquidity Providers 2022 month.

It is quite natural for a company of that size to find it challenging to sustain high growth rates. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tencent wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. However, Chinese companies have higher risk profiles than those listed in the U.S. due to geopolitical concerns, foreign exchange rate fluctuations, and governance differences. Investors interested in Tencent need to weigh whether its upside potential is worth alpari review is alpari a scam or legit forex broker the risk.

In other words, Tencent has twin engines of internal business and external investments to keep its growth machine humming. All in all, though, it was a good quarter for the company, particularly given the relative sluggishness of the domestic economy — which has battered other business sectors. Slow development of the AI efforts might be a source of concern if they don’t accelerate soon. Investors 7 commonly counterfeited currencies should keep an eye on this in the coming months. It’s the biggest music-streaming platform in the world and it’s already making money, but that’s not all for this hugely exciting spin-off.

As part of your research, make sure your selected broker allows you to buy shares that trade on the OTC Markets Exchange. Tencent listed its stock on the Hong Kong Stock Exchange in 2004. Chinese gaming and social media giant Tencent on Wednesday reported profit above analysts’ expectations, while revenue missed slightly. Tencent’s online gaming revenue rose 29% year over year to 39.1 billion yuan ($6.0 billion), compared to its 45% growth in the third quarter. In mid-2024, Tencent’s dividend yield was less than 1% (given its share price and the exchange rates at the time), less than the S&P 500’s roughly 1.4% dividend yield. Given Tencent’s lower yield, annual payment schedule, and the risk of foreign exchange rate fluctuations, it’s likely not a very appealing option for most dividend-focused investors.

1. However, over half of those profits came from one-time gains during the quarter.
2. This four-step guide will show you how to invest in stocks and add Tencent to your portfolio.
3. Investors are awaiting a flurry of earnings cards from bellwether companies including JD.com, Alibaba and Tencent.
4. For example, its regulatory crackdowns on the online education and tech industries have severely impacted Tencent’s advertising and cloud income.

In many ways, Tencent is like many of the top U.S. technology companies all rolled into one. WeChat, Tencent’s top messaging platform and Mini Program ecosystem, still grew its monthly active users 5% year over year to 1.23 billion. But if the Chinese government starts aggressively throttling or policing Tencent’s data-gathering capabilities, it could struggle to expand WeChat and its other social media platforms. The bears will note that Tencent’s top-line growth decelerated from its previous two quarters because two of its core businesses, online gaming and social networking, generated slower growth. Reddit (RDDT) stock sank Friday on a report Advance Magazine Publishers planned to borrow against its stake in the social media platform and regulatory filings disclosed Chinese conglomerate Tencent Holdings sold shares. Tencent had been a hallmark of consistent and sustainable growth, with an unbroken track record of growth since it went public in 2004.

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. Tencent is a publicly traded company listed on the Hong Kong Stock Exchange. In addition, the Chinese e-commerce giant has a U.S. listing on the OTC Markets Exchange, where it trades under the stock ticker TCEHY. Before making your first trade, you’ll need to determine a budget for how much money you want to invest. You’ll then want to figure out how to allocate that money.