Unusual Restaurants Surrey, George Hamilton Imelda Marcos, Articles T

Of course, the quantum of the financial penalty is not as important as the signal on antitrust sent by the Chinese regulators and authorities if this does come true. TCEHY is a tech conglomerate with market-leading positions in video gaming, social networks, video streaming, fintech, cloud, and more. China's greatest challenge is arguably an ageing population and its ills, and the country's recent crackdown on tutoring companies is seen as a way to support its new "three-child" policy and encourage more people to have children without being worried about the stress that their kids could be faced with. I maintain my Neutral rating for Tencent Holdings Limited (OTCPK:TCEHY) [700:HK]. Tencent (OTCMKTS:TCEHY) has a market capitalization of $450.39 billion and generates $86.82 billion in revenue each year. Tencent Holdings Limited Stock Forecast and Price Prognosis Data for 2022 History Forecast Charts Data Market Q&A Comments Buy CRYPTO Get 12% interest on Crypto Select other stock. Past performance is not a guarantee of future results, and a loss of original capital may occur. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. Zacks provides the average brokerage recommendation (ABR) for thousands of stocks for most of the leading investment web sties. The technology company reported $0.32 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.34 by $0.02. The P/E ratio of Tencent is 16.95, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 361.38. Amidst all the chaos, TCEHY reported strong earnings results which included 20% top line growth. Making the world smarter, happier, and richer. This payout ratio is at a healthy, sustainable level, below 75%. By creating a free account, you agree to our, In Britain, warm hubs emerge to beat soaring energy costs, In Chicago, adapting electric buses to winters challenges, Global race to boost electric vehicle range in cold weather, Ukraine ally Kallas fights for reelection in Estonia vote, Paid express lanes grow more popular in once-reluctant South, Pot vote has Oklahoma hungry to rake in green from Texas, Home Depot Stock Earnings Slide, Long Term Value Still There, AbbVie Stock Still a Solid Buy Despite Challenges, COO and Pres of Platform & Content Group & Interactive Entertainment Group, Sr. EVP and Pres of Technology & Engineering Group. The Financhill.com educational training program and software services are provided to improve financial understanding. All rights reserved. At the end of the first quarter (ending March 31, 2021), the company's total customer count (free and paying customers) rose 46% year over year to 4.1 million, while its large customer count (annual spend of more than $100,000) was up 70% year over year to 945. Tencent Holdings has risen higher in 9 of those 14 years over the subsequent 52-week period, corresponding to a historical accuracy of 64.29%, Based on the share price being above its 5, 20 & 50 day exponential moving averages, the current trend is considered strongly bullish and. Start Now for $1 >>, Jessica Silver-Greenberg and Michael Corkery. We nevertheless expect to see a good deal of change . During that same time period, TCEHY has more than doubled both its top and bottom lines: The net result is that TCEHY has seen its earnings multiple contract significantly, and its arguable that the stock was cheap even prior to this fall: Many of my Seeking Alpha peers have made the case that, in comparison with Alibaba (BABA) and other Chinese tech companies, TCEHY is more insulated from government regulatory backlash due to having already dealt with it many years ago. Is It a Bad Time to Invest in China Tech Giants? All rights reserved. Should I buy or sell Tencent stock right now? ", At the company's most recent 1Q 2021 earnings call on May 20, 2021, Tencent emphasized that it will "pursue long-term social value, rather than economic profits" via the "development of self-sustainable operations, which could create new value from related industries and for society" and "charitable donations." The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. I have read and understand the, I understand that I will be billed $499 monthly if I choose to continue. Tencent Holdings' listed subsidiary, Tencent Music Entertainment (TME), which operates the country's leading music streaming platforms, was requested by "China's State Administration for Market Regulation or SAMR" to "give up exclusive music licensing rights", as reported in a recent July 24, 2021 Seeking Alpha news article. (TWLO) Twilio Stock Predictions from the Leading Provider of Short and Long Term Stock Price Forecasts. See what's happening in the market right now with MarketBeat's real-time news feed. Applying a multiple of 8-10 times on estimated sales, the company's valuation will gallop to about $10 trillion,. The company is positioning itself as "Cisco-as-a-service,"wherein a software-based network service is used to replace all types of network hardware such as routers, firewalls, VPNs, and load balancers. Assessing where Tencent will be in five years' time requires an understanding of the new regulatory environment in China and the top priorities of the country, and making an evaluation of how all of these could potentially impact TCEHY's future business operations. buying earnings power at a discount in great companies like "Magic Formula" stocks, high-quality businesses, hidden champions and wide moat compounders). At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. In five years' time, I see slower earnings growth and reduced profitability for Tencent, as the company tries to strike a delicate balance between the interests of its shareholders and those of the nation. The company is also involved in the production, investment, and distribution of films and television programs for third parties, as well as copyrights licensing, merch I wrote this article myself, and it expresses my own opinions. The consensus among Wall Street analysts is that investors should "hold" TCEHY shares. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. things fall apart chapter 10 quotes. Not Ident. This indicates that the company will be able to sustain or increase its dividend. TCEHY Stock 12 Months Forecast $48.00 (10.02% Upside) Based on 1 Wall Street analysts offering 12 month price targets for Tencent Holdings in the last 3 months. Tencent trades on the OTCMKTS under the ticker symbol "TCEHY.". View the best growth stocks for 2023 here. In the first quarter, App Annie ranked Shoppe as a leading app on Android platforms in Southeast Asia and Taiwan in the shopping category based on average monthly users and total time spent. Investors are always searching for opportunities to yield handsome returns. At the same t #Morningstar #International Stocks #HowtoInvest Experts forecast that international stocks will outperform U.S. stocks in the coming decade. I expect these actions to limit TCEHYs future profitability, though it is unclear to what extent. is $39.31 , and for 2033 Mar. The company employs 85,858 workers across the globe. This represents a dividend yield of 3.2%. If such regulatory and policy headwinds were absent, shareholders will definitely prefer that TCEHY either returns the RMB50 billion in investment gains (currently earmarked for the new Sustainable Social Value Organization) to shareholders as dividends, or reinvest such proceeds in growing its exiting core businesses. Zacks Rank Education -- Learn more about the Zacks Rank I wrote this article myself, and it expresses my own opinions. Those who understand the pendulum's behavior can benefit enormously. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy stocks with the highest probability of success. tcehy stock forecast 2030. made by four brokerage firms. View TCEHY analyst ratings or view top-rated stocks. I would expect that if it announced and actually repurchased even $10 billion of stock, then I personally might find myself buying the stock upon evidence of an executed material buyback program. Date Range investment. What is a Good Dividend Yield? I don't view Tencent stock as a good Buy, as I think the Chinese government's policies will have a major impact on the company's business operations in the medium term. Many investors think Beijing's crackdown on technology firms is ending, but the Chinese government will still hold influence over names like Alibaba and Tencent. NYSE and AMEX data is at least 20 minutes delayed. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. This could possibly translate to a lower degree of regulatory scrutiny for the company in the future. 1 month ago - Bloomberg Markets and Finance, A Comprehensive Guide to Video Gaming ETFs. The company's average rating score is 2.20, and is based on 2 buy ratings, 2 hold ratings, and 1 sell rating. Besides Free Fire, the company also distributes several of Tencent's (TCEHY -0.25%) popular games. Visit www.zacksdata.com to get our data and content for your mobile app or website. Even before accounting for operating leverage, a 40x earnings multiple wouldnt be unreasonable in light of that growth rate. I understand my credit card will be charged $7 today for 7 days of Platinum access. 2. Si no quieres que nosotros ni nuestros socios utilicemos cookies y datos personales para estos propsitos adicionales, haz clic en Rechazar todo. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. This gaming platform stands out from the competition because players can wager on these games for cash prizes, making them more attractive than free-to-play games. In 2021, TCEHY's revenue was 560.12 billion, an increase of 16.19% compared to the previous year's 482.06 billion. The company's quarterly active users of digital entertainment soared by 61% year over year to 648.8 million, while quarterly paying users rose even faster at 124% year over year to 79.8 million at the end of the first quarter (ending March 31, 2021). On the negative side of things, it is a worry that Tencent is prioritizing national interest over profit maximization. If you have an ad-blocker enabled you may be blocked from proceeding. Notably, Tencent Holdings has also decided to allocate RMB50 billion to its Sustainable Social Value Organization as a start, which will be financed by the company's "investment gains.". . Learn more. Asia Value & Moat Stocks is a research service for value investors searching for attractive Asia-listed investment opportunities with a huge gap between price and intrinsic value, leaning towards both deep value balance sheet bargains (i.e. Theme #1: Cannabis. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. We use cookies to understand how you use our site and to improve your experience. If you have an ad-blocker enabled you may be blocked from proceeding. Nikada/iStock Unreleased via Getty Images. Invest better with The Motley Fool. The current ABR compares to an ABR of 1.50 a month ago based on four recommendations. In 2021, TCEHY's revenue was 560.12 billion, an increase of 16.19% compared to the previous year's 482.06 billion. The recent acquisition of demand-side advertising platform Aarki is expected to reduce the company's customer-acquisition expenses and, subsequently, its losses. The shares retreated to a low of $0.0084, which was a few points below the year-to-date high of $0.0122. Image: REUTERS/Francois Lenoir . Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service. I have no business relationship with any company whose stock is mentioned in this article. Get involved with our crowdsourced digital platform to deliver impact at scale. Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. The company's freemium strategy of offering its services free to individual users and then leveraging the insights to develop premium-priced products for enterprises has been paying rich dividends. Here's a recap. Unfortunately, my worst fears have been confirmed to a large extent. However, as I mentioned earlier in this article, China's new regulations and policy stance could have a negative impact on Tencent Holdings' future earnings, which are unlikely to be reflected in the company's current consensus financial numbers yet. The company generated robust 20% top line growth while maintaining strong profit margins. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. More importantly, Tencent Holdings has previously suffered from a suspension of new game approvals for months in the country in 2018 when Chinese regulators became concerned about the effects of games on the health of youths in areas such as mental health (e.g. Fed's Shocking New Plan to Control Your Money, Oriental Culture (NYSE:OCG) versus Tencent (OTCMKTS:TCEHY) Head to Head Review, Tencent Eyes Deal To Sell Meta's Quest 2 VR Headset in China, The Biggest Videogaming Market, Alibaba Rival Tencent Dumps Metaverse Ambitions As Macro Uncertainties Weigh, Tencent And NetEase Score Wins As Chinese Regulator Doles Out Gaming Licenses; Alibaba Bags One This Time Too, Tencent, NetEase Score More Wins As China Awards More Gaming Licenses: Report, China's Tencent Looking to Gobble Up 'Angry Birds' Maker Rovio, China Taps Alibaba, Tencent To Beat US Sanctions, The Best Way to Invest in Emerging Markets Just Got Even Better, TENCENT HLDGS UNSP/ADR (TCEHY) Q3 2022 Earnings Call Transcript. This rating has held steady since February, when it was unchanged from a Buy rating.Move your mouse over pastmonths for detail. Analyst Consensus: Buy Analyst Ratings Uncover cheap stocks, great businesses listed in Asia focusing on HongKong. This ironically has not appeared to be the case with TCEHY, which has fallen over 40% from all time highs earlier this year: Now trading around $59 per share, TCEHY is barely higher than where it traded at the beginning of 2018. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Most stock quote data provided by BATS. Prior to this piece of news, the proposed merger between two of Tencent Holdings' investees, DouYu International Holdings (DOYU) and Huya (HUYA), both of which are live game streaming platform operators, was rejected by SAMR in mid-July 2021. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. The total 2030 revenue will likely come in at $1 trillion, the analyst estimates. Over the next 52 weeks, Tencent Holdings has on average historically risen by 28.7% based on the past 14 years of stock performance.