Specifically, Tencent is dominant in the Chinese games market with an estimated 40% market share, which raises antitrust concerns. Snowflake Reports Weak Guidance: Is the Growth Snowflake Melting? Future price of the stock is predicted at 99.000997145002$ (110.104% ) after a year according to our prediction system. But the good news is, if China invades Taiwan, there is a way to protect yourself. With second-quarter earnings scheduled for Aug. 3, the short-term share price trajectory will depend on factors such as whether the company surpasses analysts' estimates, changes in its fiscal 2021 outlook and paying user base, and future developments in international market expansion and partnerships. Dominant companies operating in sectors critical to the livelihood of ordinary Chinese people like Tencent could be compelled to accept slower earnings growth and reduced profitability in the best interests of the country, as indicated by TCEHY's comments at its most recent results briefing referenced to above. The stock appears to have around 100% upside even to conservative multiples, and I explain what investors should wait for before buying into the stock. Build your trading network; Follow your favorite assets . In his unique role as chief exploration officer, David Wallerstein, searches the globe for innovations that could change the world. TCEHY is a tech conglomerate with market-leading positions in video gaming, social networks, video streaming, fintech, cloud, and more. Zscaler, Inc Plummets, Is It Time To Buy The Dip? Will Tencent Holdings Stock Go Up Next Year? Finally, although digital financial services are currently a small part of Sea's revenue mix, it is growing at a fast pace. Yahoo Finance's Ines Ferre joins the Live show to discuss the downturn across Chinese tech stocks. 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. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. The 10 top tech stocks lost a combined $4.6 trillion in market cap in 2022. Amazon led the way by losing about $856 billion in market cap nearly half its market valuation over the last 12 months, Chinese tech stocks are a great pick at current valuations but only for the long-term investors, says Anand Batepati of GFM Focus Investing. This means that this stock is suited as a new addition to your portfolio as trading bullish markets is always a lot easier. Our daily ratings and market update email newsletter. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. 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. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Discovery Company. Based on an average daily volume of 6,786,200 shares, the short-interest ratio is presently 1.4 days. In spite of modest gross margins, TCEHY has been able to generate solid non-IFRS net margins of around 25% or higher: TCEHY is trading around 20x earnings, which is incredibly cheap for a company that is growing revenues at a 20% clip. Past success does not guarantee future profit !! Currency in USD Follow 47.12 -0.12. By not hosting games of chance, the company has managed to reduce its regulatory challenges associated with the likes of daily fantasy sports and online sportsbooks. Against this backdrop, the stock seems to be well-positioned to emerge as a wealth generator in the coming years. Move marks shift in focus by Beijing as it tries to extend influence and keep sector in check. How were Tencent's earnings last quarter? Cost basis and return based on previous market day close. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Tencent has received a consensus rating of Hold. On average, analysts rate TCEHY stock as a buy. The company is not yet profitable, but financials are trending in the right direction. Those who believe that the pendulum will move in one direction forever or reside at an extreme forever eventually will lose huge sums. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Against this backdrop, the stock seems to be well-positioned to emerge as a wealth generator in the coming years. Get the latest Tencent Holdings ADR (TCEHY) real-time quote, historical performance, charts, and other financial information to help you make more informed trading and investment decisions. Receive TCEHY Stock News and Ratings via Email, February 22, 2023|americanbankingnews.com. 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. There are two other points worth noting, when evaluating the outlook of Tencent in the next five years. Tencent - TCEHY - Stock Price Today - Zacks Tencent (TCEHY) (Delayed Data from OTC) $47.12 USD -0.12 (-0.25%) Updated Mar 3, 2023 03:59 PM ET Add to portfolio Zacks Rank: 3-Hold 3 Style. The dividend payout ratio is 6.47%. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. View which stocks are hot on social media with MarketBeat's trending stocks report. 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. Tencent (OTCPK:TCEHY), one of the highest quality stocks available in the Chinese market, has seen its stock crushed in spite of not being in the direct crosshairs of the regulatory overhaul that has caused the Chinese bear market. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. Per a report published on Yahoo Finance, the global eSports market size is likely to expand by $3.5 billion till 2027, at a CAGR of 21.81%. Things got worse last week, when Bloomberg reported on July 24, 2021 that the Chinese regulators are "banning companies that teach the school curriculum from making profits, raising capital or going public." (844) 978-6257. 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. According to its sources, Reuters claimed in a late-April 2021 article that "Tencent should expect a penalty of at least 10 billion yuan." made by four brokerage firms. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: You have already added five stocks to your watchlist. The. Financhill is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Tencent Holding Ltd. currently has an average brokerage recommendation (ABR) of 1.50 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) All Rights Reserved. Actual results may differ. Si no quieres que nosotros ni nuestros socios utilicemos cookies y datos personales para estos propsitos adicionales, haz clic en Rechazar todo. That said, TCEHY has noted that it has complied with the new regulation and only 2.6% of game grossing receipts came from players aged under 16. 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. If youre new to trading, then youve probably heard the wrong thing about optionsthat theyre risky, unpredictable, or difficult. ZacksTrade and Zacks.com are separate companies. All rights reserved. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. In 2021, TCEHY's revenue was 560.12 billion, an increase of 16.19% compared to the previous year's 482.06 billion. higher than where it traded at the beginning of 2018. Not Ident. 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. China Restricts Access to ChatGPT: Report. Tencent has a P/B Ratio of 3.33. While Sea pays royalties to Tencent, this distribution activity has also helped expand the company's gaming user base. The 12-month stock price forecast is $53.42, which is an increase of 13.37% from the latest price. On the negative side of things, it is a worry that Tencent is prioritizing national interest over profit maximization. We use cookies to understand how you use our site and to improve your experience. The content on any of Financhill websites, products or communication is for educational purposes only. Investors are always searching for opportunities to yield handsome returns. Transform Your Portfolio With This Simple Morning Trade! Twilio Fair Value Forecast for 2023 - 2025 - 2030. Instead, I would like to see the company execute on a material stock repurchase program at current levels. All rights reserved. Find the latest TENCENT HOLDINGS LIMITED UNSP A (TCEHY) stock forecast based on top analyst's estimates, plus more investing and trading data from Yahoo Finance A RMB10 billion financial penalty will be roughly equivalent to about 6% of TCEHY's FY 2020 net profit attributable to shareholders, based on S&P Capital IQ data. dolphfyn/iStock Editorial via Getty Images. Even amidst the chaos, the company has generated strong growth and profitability while maintaining a solid financial position. (TWLO) Twilio Stock Predictions from the Leading Provider of Short and Long Term Stock Price Forecasts. China moving to take 'golden shares' in Alibaba, Tencent units - FT, Ten Big Tech Stocks Lost $4.6T Market Cap in 2022. Financial numbers in CNY Financial Statements Analyst Forecast According to 60 analysts, the average rating for TCEHY stock is "Buy." Over the next 52 weeks, Tencent Holdings has on average historically risen by 28.7% based on the past 14 years of stock performance. Tencent Holdings Limited (OTCMKTS:TCEHY) announced its quarterly earnings results on Wednesday, March, 18th. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Ceri Parker Previously Commissioning Editor, Agenda, World Economic Forum. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. gaming and social media), and the company's access to a significant amount of critical data relating to Chinese users (e.g. The risk of loss in trading securities can be substantial. This indicates that the company will be able to sustain or increase its dividend. The Motley Fool has a disclosure policy. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. 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. Tencent's mailing address is Tencent Building Kejizhongyi Avenue Hi-tech Park, Shenzhen F4, 518057. Tencent's OTC shares are relatively less liquid than the company's shares listed on the Hong Kong Stock Exchange. Tencent Holdings Ltd ADR stock price has been showing a declining tendency so we believe that similar market segments were not very popular in the given period. It offers online games and social network services; FinTech and cloud services, and online advertising services. I understand that I am receiving a special one-time deal and will be billed $397 for 6 months membership (instead of the usual 3 months quarterly membership) and that after 6 months I will be billed at $397 quarterly thereafter unless I choose to cancel, which I may do at any time. The cloud business of Chinese technology giant Tencent announced the collaboration in a press release on Abhay Deshpande, Centerstone Investors chief investment officer,, joins 'The Exchange' to discuss why he calls the current market a stock picker's market and offers the top names to buy. Making the world smarter, happier, and richer. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. The shares retreated to a low of $0.0084, which was a few points below the year-to-date high of $0.0122. In the medium to long term, Tencent's competitive moat could become narrower, as the company opens up its ecosystem to more external parties and competitors as well to satisfy regulators that its market dominance does not come at the expense of fair competition and consumers' interests. 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. Share: Crowdsource Innovation. Disclaimer: Past performance is no guarantee of future performance. The 53 analysts offering 12-month price forecasts for Tencent Holdings Ltd have a median target of 53.65, with a high estimate of 74.70 and a low estimate of 31.85. If you do not, click Cancel. 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. Stock Price Forecast According to 60 stock analysts, the average 12-month stock price forecast for TCEHY stock is $ 53.42 , which predicts an increase of 13.08%. These predictions take several variables into account such as volume changes, price changes, market cycles, similar stocks. Stock Price Forecast. * indicates the important links in the menu. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Further, owners, employees, agents or representatives of Financhill are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory. What is Tencent's stock price forecast for 2023? The technology company can be reached via phone at 86-755-8601-3388, via email at ir@tencent.com, or via fax at 86-755-8601-3399. Digital entertainment (involving game development and publishing) is the only profit-making business and the main source of cash flow for the company. As of 2023 March 05, Sunday current price of TCEHY stock is 47.120$ and our data indicates that the asset price has been in a downtrend for the past 1 year (or since its inception). expressing concerns that the industry is focused on profits and placing more restrictions on the industry, Tencent is the "Facebook of China," one of the "PayPals of China," and the "Video Game King of the World.". China's video games regulator on Tuesday granted publishing licences to 88 online games, including titles belonging to Tencent Holdings Ltd , NetEase Inc and miHoYo. Of the four recommendations deriving the current ABR, three are Strong Buy, representing 75% of all recommendations. The following companies are subsidiares of Tencent: 10 Chambers Collective, 1C Entertainment, APKPure Inc., Beijing BIZCOM Technology Company Limited, Beijing Starsinhand Technology Company Limited, Beijing Tencent Culture Media Company Limited, Bitauto, Cat Cake, China Literature Limited, China Music Corp, Cloudary, Comsenz, Fatshark, Funcom Games, Grinding Gear Games, HUYA, Inflexion Games, Klei Entertainment, Leyou Group, Linktech Navi, Miniclip SA, Nanjing Wang Dian Technology Company Limited, Riot Games, Riot Games Inc., Sanook, Sharkmob, Shenzhen Domain Networks, Shenzhen Shiji Kaixuan Technology Company Limited, Shenzhen Tencent Culture Media Company Limited, Slamfire Inc., Stunlock Studios, Supercell, Supercell Oy, TME, Tencent Asset Management Limited, Tencent Cloud Computing (Beijing) Company Limited, Tencent Computer, Tencent Cyber (Shenzhen) Company Limited, Tencent Cyber (Tianjin) Company Limited, Tencent Technology, Tencent Technology (Beijing) Company Limited, Tencent Technology (Chengdu) Company Limited, Tencent Technology (Shanghai) Company Limited, Tencent Technology (Wuhan) Company Limited, Tequila Works, Turtle Rock Studios, Wake Up Interactive Ltd., Yager Development GmbH, Zam, and iFlix. is $59.05 , for 2027 Mar. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I don't view Tencent stock as a good Buy now. I have no business relationship with any company whose stock is mentioned in this article. Stock Price Forecast The 53 analysts offering 12-month price forecasts for Tencent Holdings Ltd have a median target of 52.38, with a high estimate of 74.70 and a low estimate of 31.85. With edge-based network architecture allowing for data and computations to be performed at a localized data center closer to the user instead of a centralized data center, Cloudflare's network is inherently fast, reliable, and more secure. I wrote this article myself, and it expresses my own opinions. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. I expect these actions to limit TCEHYs future profitability, though it is unclear to what extent. Unlock HIDDEN Features! On average, they predict the company's stock price to reach $189.00 in the next year. The Motley Fool owns shares of and recommends Cloudflare, Inc., Nvidia, Sea Limited, Skillz Inc., and Tencent Holdings. The Financhill.com educational training program and software services are provided to improve financial understanding. Read our dividend analysis for TCEHY. Only one analyst offered a short-term price target of $48.00 for Tencent Holding Ltd. I maintain my Neutral rating for Tencent Holdings Limited (OTCPK:TCEHY) [700:HK]. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. The total 2030 revenue will likely come in at $1 trillion, the analyst estimates. Tencent Stock Price. Members of Best Of Breed get exclusive access to our model portfolio. Tencent's stock price has dropped by -21% in the past three months and its shares are now at a new 52-week low, thanks to regulatory headwinds. I have read and understand the, Characteristics and Risks of Standardized Options. I am not receiving compensation for it (other than from Seeking Alpha). The company operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. 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.
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tcehy stock forecast 2030