Tencent Holdings Ltd. Stock News

Shares of Chinese e-commerce stocks Alibaba (BABA 4.09%), Tencent (TCEHY 3.66%), and PDD Holdings (PDD 8.08%) were rallying on Tuesday, up 4.7%, 4.1%, and 8.8%, respectively, as of 1 p.m. ET.

Earlier this week, many technology stocks sold off sharply on news of DeepSeek R1, the groundbreaking, low-cost AI model from China that materially lowered the cost of deploying AI.

Tencent's WeChat is a central hub in China, driving multiple revenue streams and offering a significant moat that Western tech giants envy. I prefer investing in Tencent through Prosus, which offers a discounted entry and benefits from Dutch tax laws and strategic buybacks. Prosus' double-buyback strategy enhances value creation by selling Tencent shares to repurchase its own undervalued shares...

Ubisoft cut its 2024-2025 fiscal year guidance due to poor management execution and game launch delays, notably Assassin's Creed Shadows. Tencent is a likely buyer for Ubisoft, with the appointment of lead advisors indicating the deal is beyond the exploratory stage. Acquiring Ubisoft could add RMB 4bn to Tencent's gaming revenue, addressing its innovation challenges and aging IP portfolio.

Tencent shares present a buying opportunity despite U.S. blacklisting, as the company's fundamentals remain strong and minimally reliant on U.S. capital or technology. Tencent's aggressive buyback of HK$1.5 billion during the price drop demonstrates confidence and aims to capitalize on temporary price pressure. Strong financial performance with 7% revenue growth and 24% operating income increas...

Tencent's strong social media and fintech segments, coupled with a positive gross profit trend, underline favorable business trends. TCEHY's core value-added services and fintech segment are driving significant revenue and gross profit growth. The Company's valuation is highly attractive, trading at a low forward P/E ratio of 11.0x, and the company generates billions of dollars each quarter in ...

Prosus N.V. stock trades at a significant discount to its NAV, which primarily consists of Tencent Holdings Limited shares. Tencent itself has underperformed recently, meaning that Prosus potentially offers a “double discount” opportunity for value investors. I don't think Prosus can eliminate its NAV discount any time soon, but moves such as the Despegar.com acquisition are incrementally small...

In 3Q24, TCEHY generated RMB 167.2 billion, posting revenue growth of 8.13% y/y and 3.7% q/q. During this period, operating and net margins have expanded while FCF margin remains high. Currently, TCEHY is facing multiple headwinds due to geopolitical tensions and China's deteriorating economy. Recently, the US has added TCEHY to the Chinese military blacklist, impacting its valuation and invest...