Tencent TCEHY Stock Price, News & Analysis

A report by Chinese media and a knowledgeable source confirmed Ma’s speech, underlining Tencent’s struggle to maintain its top position in China’s tech industry amid fierce competition and emerging technologies. At Tencent’s annual meeting in Shenzhen, Ma admitted that the company had become complacent in its gaming sector, allowing competitors to release new, successful games. When lockdowns ended across the world, sales started to slow. Customers are also holding off on buying expensive titles or stick to fewer games amid high inflation. Patient investors with investing horizons of more than five years should consider buying some shares. On a slightly positive note, Tencent has somewhat recovered from its 2022 woes.

A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. A D/E ratio of 1 means its debt is equivalent to its common equity. When comparing this ratio to different stocks in different industries, take note that some businesses are more capital intensive than others. A D/E ratio of 2 might be par for the course in one industry, while 0.50 would be considered normal for another. So it’s a good idea to compare a stock’s debt to equity ratio to its industry to see how it stacks up to its peers first. The Earnings Yield (also known as the E/P ratio) measures the anticipated yield (or return) an investment in a stock could give you based on the earnings and the price paid.

Some of the items you’ll see in this category might look very familiar, while other items might be quite new to some. The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports. Tencent did not immediately tradeallcrypto respond to a request for comment on Tuesday. Los Angeles-based Riot said teams outside of core development will see the largest impact from layoffs. That move came as the Chinese government tried to shore up investor confidence in its capital markets.

  1. The Chinese government has ousted a top official in charge of regulating the country’s gaming industry, according to reports, in a likely effort to stem the damage from a stock market rout over propos…
  2. EBITDA, as the acronym depicts, is earnings before interest, taxes, depreciation and amortization.
  3. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment.
  4. Those restrictions also coincided with a temporary suspension on new video game approvals in China, which started last July and ended this April.

To keep making money from its ecosystem, all it has to do is ensure that it remains the preferred communication platform in China. Fortunately, it is the only game in town, and it could keep that position for a while. While its shareholders suffered during that period, contrarian investors can consider its aftermath an opportunity to buy shares of one of the best companies in China for cheap. However, analysts’ predictions can be wrong and have been inaccurate in the past. Only you can decide whether Tencent is suitable for your portfolio.

Our testing substantiates this with the optimum range for price performance between 0-20. Like the earnings yield, which shows the anticipated yield (or return) on a stock based on the earnings and the price paid, the cash yield does the same, but with cash being the numerator instead of earnings. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment. In the third quarter of 2023, Tencent’s fintech and business services segment – which includes cloud computing for enterprise clients – grew 16 per cent from a year earlier to 52 billion yuan.

Debt to Capital (or D/C ratio) is the fraction of debt (including mortgages and long-term leases) to long-term capitalization. Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company’s value and is helpful in comparing one stock to another. For example, a regional bank would be classified in the Finance Sector. Within the Finance Sector, it would fall into the M Industry of Banks & Thrifts. And within the M Industry, it might further be delineated into the X Industry group called Banks Northeast.

As an investor, you want to buy srocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The Value Scorecard identifies the stocks most likely to outperform based on its valuation metrics.

US$3 billion top Asia fund bets on Tencent again despite China gaming rules

A ratio of 1 means a company’s assets are equal to its liabilities. Less than 1 means its liabilities exceed its short-term assets (cash, inventory, receivables, etc.). A ratio of 2 means its assets are twice that of its liabilities. A ‘good’ number would usually fall within the range of 1.5 to 3. Like most ratios, this number will vary from industry to industry.

Financial Strength

Riot Games is laying off about 530 employees, which represents 11% of its workforce, the Tencent-owned company announced on Monday. The League of Legends maker is also sunsetting its five-year-old pub… We’d like to share more about how we work and what drives our day-to-day business. Outside of companies subsidiary of its game division, Tencent as a whole has many major and minor investments in domestic and, since the 2010s, foreign game companies.

Price and EPS Surprise Chart

The 1 week price change reflects the collective buying and selling sentiment over the short-term. A strong weekly advance (especially when accompanied by increased volume) is a sought after metric for putting potential momentum stocks onto one’s radar. Others will look https://traderoom.info/ for a pullback on the week as a good entry point, assuming the longer-term price changes (4 week, 12 weeks, etc.) are strong. If a company’s net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes.

NetEase, Tencent shares rebound after China voices support for gaming industry

Your decision to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money. When looking for Tencent stock projections, it’s important to bear in mind that analysts’ forecasts can be wrong. Analysts’ predictions are based on making a fundamental and technical study of the stock’s performance. Meanwhile, Iris Pang, Greater China chief economist at ING Think, said increased regulation of China’s consumer tech industry has seriously dented company revenues with widespread implications. Tencent had similarly divested 86% of its state in Chinese e-commerce company JD.com (JD) in the form of a special dividend to its shareholders in late 2021. Tencent carried out cost-cutting measures by exiting non-core businesses and lowering marketing spends as quarterly profit fell for 55% YOY in the June 2022 quarter.

Value investors will typically look for stocks with P/E ratios under 20, while growth investors and momentum investors are often willing to pay much more. Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers. One of the reasons why some investors prefer the P/CF ratio over the P/E ratio is because the net income of the cash flow portion rightly adds depreciation and amortization back in since these are not cash expenditures. In contrast, the net income that goes into the earnings portion of the P/E ratio does not add these in, thus artificially reducing the income and skewing the P/E ratio.

Tencent Holdings: China’s most valuable company

Tencent’s social-networks business generated stable growth through in-app purchases on its livestreaming platforms as well as premium subscription sales on Tencent Video and Tencent Music Entertainment Group. However, all of those platforms could still struggle to expand in the saturated streaming-media market. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date. If a stock’s Q1 estimate revision decreases leading up to its earnings release, that’s usually a negative sign, whereas an increase is typically a positive sign.