TCEHY generated $16 billion in free cash flow last year and maintains a strong balance sheet with almost neutral leverage and an additional $127 billion in equity investments (totaling over 20%. Of course, the quantum of the financial penalty is not as important as the signal on antitrust sent by the Chinese regulators and authorities if this does come true. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. I maintain my Neutral rating for Tencent Holdings Limited (OTCPK:TCEHY) [700:HK]. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Tencent's mailing address is Tencent Building Kejizhongyi Avenue Hi-tech Park, Shenzhen F4, 518057. Zacks Ranks stocks can, and often do, change throughout the month. Instead, I would like to see the company execute on a material stock repurchase program at current levels. I have read and understand the, Characteristics and Risks of Standardized Options. This indicates that Tencent will be able to sustain or increase its dividend. Learn More. I note that TCEHY hasnt been completely spared from recent regulatory actions. This realization might suggest that TCEHY is a buying opportunity courtesy of the falling price. Get them exclusively at Asia Value & Moat Stocks. As of 2023 February 28, Tuesday current price of TCEHY stock is 44.480$ and our data indicates that the asset price has been in a downtrend for the past 1 year (or since its inception).. 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. How were Tencent's earnings last quarter? Those who believe that the pendulum will move in one direction forever or reside at an extreme forever eventually will lose huge sums. The ex-dividend date is Thursday, May 19th. At recent prices, TCEHY is trading at only 6x forward sales. Tencent (OTCMKTS:TCEHY) has a market capitalization of $450.39 billion and generates $86.82 billion in revenue each year. Members of Best Of Breed get exclusive access to our model portfolio. The news flow for Tencent in recent weeks is also negative. Ceri Parker Previously Commissioning Editor, Agenda, World Economic Forum. Actual results may differ. Skillz is now focused on adding more multiplayer turn-based games and is investing in synchronous technology (allowing multiple players to play simultaneously) to add more profitable games, such as first-person shooters and real-time strategy games. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score. But the current regulatory environment and the policy stance by the Chinese authorities imply that China could be willingly to "redistribute" the profits of the biggest companies in the country for the benefit of society at large in one way or another. Notably, Tencent Holdings' core Value-added Services or VAS business, comprising of social networking and online gaming operations, have a significant influence on society and youths. Tencent Stock Price. Tencent Holdings Ltd. ADR analyst ratings, historical stock prices, earnings estimates & actuals. The technology company earned $15.02 billion during the quarter, compared to analyst estimates of $14.76 billion. Transform Your Portfolio With This Simple Morning Trade! Discover historical prices for TCEHY stock on Yahoo Finance. Our site uses a custom algorithm based on Deep Learning that helps our users to decide if TCEHY could be a good portfolio addition. Shares of these innovative growth stocks are richly valued, yet they have solid potential to go even higher in the coming years. If you have $10,000 in capital that is not needed for paying bills or setting up an emergency fund, then the following digitization-driven stocks could help you increase this investment to $50,000 by 2030. Get daily stock ideas from top-performing Wall Street analysts. Nikada/iStock Unreleased via Getty Images. Is this happening to you frequently? Their TCEHY share price forecasts range from $48.00 to $330.00. Even amidst the chaos, the company has generated strong growth and profitability while maintaining a solid financial position. Unfortunately, my worst fears have been confirmed to a large extent. 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.". Free Stock Analysis Report: See The True Value of Any Stock. higher than where it traded at the beginning of 2018. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. At the end of my 7 days, my credit card will be conveniently charged $397/quarterly (every 3 months) until I cancel. Value added services dragged on overall results, perhaps due to the rising regulation in the video game industry. 2. On average, they predict the company's stock price to reach $189.00 in the next year. Please log in to your account or sign up in order to add this asset to your watchlist. The pandemic-accelerated digitization of the global economy has brought to the forefront several new avenues for wealth creation. It may be difficult (though not impossible, as discussed below) for TCEHY to prove that it is somehow uniquely different than other Chinese stocks, meaning that TCEHY might not recover until general sentiment toward Chinese stocks improves. 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. In the first quarter, quarterly paying users for the company's mobile wallet were up 145% year over year to over 26.1 million. For the next year, analysts predict that Fair Value . The median estimate represents a +13.86% increase from the last price of 47.12. Ha nem szeretn, hogy mi s partnereink cookie-kat s szemlyes adatokat hasznljunk ezekre a tovbbi clokra, kattintson Az sszes elutastsa lehetsgre. These predictions take several variables into account such as volume changes, price changes, market cycles, similar stocks. Real-time analyst ratings, insider transactions, earnings data, and more. Cloudflare is currently guiding for fiscal 2021 revenue of $612 million to $616 million, implying a 42% year-over-year rise at the midpoint. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. A month ago, Strong Buy represented 75%. Amidst all the chaos, TCEHY reported strong earnings results which included 20% top line growth. Based on its last traded price of HK$490.00 as of July 26, 2021, Tencent Holdings is valued by the market at consensus forward FY 2021 and FY 2022 normalized P/E multiples of 28.1 times and 22.5 times, respectively. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. If the United States goes to war with another nuclear armed superpower, this could have a devastating impact on your retirement portfolio. past three months and its shares are now at a new 52-week low, thanks to regulatory headwinds. The software platform has demonstrated high scalability, which is apparent from the company's trailing-12-month gross margin close to 95%. Amikor a webhelyeinket s alkalmazsainkat hasznlja, a webhelyek s alkalmazsok szolgltatsa, a felhasznlk hitelestse, biztonsgi funkcik mkdtetse, a levlszemt s a visszalsek megelzse, valamint, a webhelyek s alkalmazsok hasznlatnak mrse, szemlyre szabott hirdetsek s tartalom megjelentse rdekldsi profilok alapjn, a szemlyre szabott hirdetsek s tartalom hatkonysgnak mrse, valamint, a termkeink s szolgltatsaink tovbbfejlesztse. However, this pullback presents a unique entry opportunity to buy shares of this high-margin and no-debt gaming company. The dividend payout ratio is 6.47%. Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, If You Invested $1,000 in Nvidia in 1999, Here's the Shocking Amount You Would Have Now, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. 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. *Average returns of all recommendations since inception. (Ad). buying earnings power at a discount in great companies like "Magic Formula" stocks, high quality businesses, hidden champions and wide moat compounders). Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. This could possibly translate to a lower degree of regulatory scrutiny for the company in the future. This product is for educational purposes only. I also stressed in that article the possibility of "further selling pressure for the stock (Tencent) if more new policies with a negative impact on Tencent and the Chinese internet market are announced." I am not receiving compensation for it (other than from Seeking Alpha). 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. I wrote this article myself, and it expresses my own opinions. In 2021, TCEHY's revenue was 560.12 billion, an increase of 16.19% compared to the previous year's 482.06 billion. The Motley Fool has a disclosure policy. is $59.05 , for 2027 Mar. Please disable your ad-blocker and refresh. TCEHY shareholders are unlikely to be swayed by the 0.35% dividend yield or token stock repurchases that the company does every year. Shopee is also making rapid inroads in Brazil. 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. These Stocks Plunge. The content on any of Financhill websites, products or communication is for educational purposes only. All rights reserved. It offers online games and social network services; FinTech and cloud services, and online advertising services. Looking for more investing ideas like this one? I have no business relationship with any company whose stock is mentioned in this article. Also, Tencent's last traded share price represents a new one-year low, and the company's shares have corrected by -36% from its all-time stock price peak of HK$766.50 (not adjusted for dividends) recorded on January 25, 2021. I have obtained the market consensus' financial forecasts from S&P Capital IQ. Get involved with our crowdsourced digital platform to deliver impact at scale. The company is also involved in the production, investment, and distribution of films and television programs for third parties, as well as copyrights licensing, merchandise sales, and other activities. The expansion of its gaming portfolio, both in the number of games and genres, increases the chances of delivering several hits, which in turn can improve the company's financials. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Read our dividend analysis for TCEHY. Sign-up to receive the latest news and ratings for Tencent and its competitors with MarketBeat's FREE daily newsletter. 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. View Tencent's Short Interest. All Rights Reserved. As highlighted earlier, Tencent Holdings' shares dropped by almost -8% from HK$531.00 as of July 23, 2021 to HK$490.00 as of July 26, 2021. See what's happening in the market right now with MarketBeat's real-time news feed. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. It is easy to see why. The 7 Best Growth Stocks to Buy to Retire Early. Shares of TCEHY stock can be purchased through any online brokerage account. 1. 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.". Exchanges . Not Ident. I wrote this article myself, and it expresses my own opinions. Zscaler, Inc Plummets, Is It Time To Buy The Dip? Tencent's stock was trading at $42.36 at the start of the year. 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. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. China Restricts Access to ChatGPT: Report. Tencent Holdings Limited (TCEHY) Stock Price, News, Quote & History - Yahoo Finance Tencent Holdings Limited (TCEHY) Other OTC - Other OTC Delayed Price. View the best growth stocks for 2023 here. Hungary, 2030, rd, Balatoni t 103/b. The company employs 85,858 workers across the globe. 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. The official website for the company is www.tencent.com. More importantly, there is market speculation that Tencent Holdings might eventually be hit with a substantial financial penalty relating to anti-trust issues, just like its major Chinese internet peer company, Alibaba (BABA) which was given a fine of RMB18 billion in April 2021. In most cases the # of brokers listed above is less than the # of brokerage firms that have a recommendation on the stock. 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. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. Even amidst the chaos, the company has generated strong growth and profitability while maintaining a solid financial position. In five years' time, I think that Tencent Holdings is still likely to retain its status as one of the leading internet and technology companies in China, as it will be challenging for any upstarts or its smaller competitors to build up their operations to a scale that is competitive with TCEHY anytime soon.