These products are not suitable for everyone and you should therefore consider your objectives, financial situation, needs and experience with these products before investing in them. Our Product Disclosure Statement (PDS) and Target Market Determination provides important information about our products and who our products are more likely to be suited to. Capital.com does not provide financial or investment advice and you should seek independent advice if you are unsure of the risks or whether our products are suitable for you. Tencent is not classified as a ‘pure-play’ AI stock like C3.ai, but artificial intelligence (AI) is prevalent across the business. The Tencent AI Lab, established in 2016, focuses on areas such as machine learning, computer vision, speech recognition, and natural language processing (NLP). These technologies are integral to its products, such as WeChat’s services, and AI-powered in-game features.
Conversely, economic slowdowns or property sector troubles in China can limit disposable income and trader confidence, potentially influencing Tencent’s share price. Worsening conditions in China could pose challenges to the company’s growth trajectory. As one of the largest Chinese companies, Tencent operates under strict regulatory scrutiny.
How to Invest in Tencent
A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade. The Chinese government’s decision to approve new gaming licenses in late 2022 marked a turning point, boosting Tencent’s revenue from its core gaming division. Despite these positives, macroeconomic challenges and weak consumer demand in China slowed Tencent’s stock price recovery.
Tencent (TCEHY) Stock Price, News & Analysis
With CFDs, you can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall). CFDs are considered a short-term trade, as they tend to be used within shorter timeframes. The Tencent AI Lab, established in 2016, focuses on areas such as machine learning, computer vision, speech recognition, natural language processing (NLP). These technologies are integral to its products, such as WeChat’s services and AI-powered in-game features. Unlock the timeless value of gold with our exclusive 2025 Gold Forecasting Report. Explore why gold remains the ultimate investment for safeguarding wealth against inflation, economic shifts, and global uncertainties.
Trader sentiment and buybacks
- The company also generates revenue through online advertising and value-added services, leveraging its vast user base and data insights.
- Please bear with us as we address this and restore your personalized lists.
- For example, uncertainty around US-China relations has historically led to Tencent’s stock price decreasing.
- If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.
In the consumer segment, Tencent is best known for its online gaming division, which develops and publishes a variety of popular titles for PC and mobile devices. The company’s gaming arm has produced homegrown successes as well as strategic investments in internationally recognized studios. Tencent shares surged during the global tech boom of 2017, with strong growth in its gaming division and investments in high-profile companies like Tesla and Spotify. This momentum saw its stock price hit a record high of$405.24 HKD in November 2017, driven by growing revenues and trader optimism around its market dominance. Tencent Holdings Ltd is an investment holding company primarily engaged in the provision of value-added services (VAS), online advertising services, as well as FinTech and business services. The VAS segment is mainly engaged in the provision of online games, video account live broadcast services, paid video membership services and other social network services.
Earnings Per Share
Make sure everything is correct, and then submit your trade to become a Tencent shareholder. Once you complete the order page, click to submit your trade and become a Tencent shareholder. Sign up for MarketBeat All Access to gain access to MarketBeat’s full suite of research tools. Please log in to your account or sign up in order to add this asset to your watchlist.
In the same way as with the 10-year ‘growth’ period, we discount future cash flows to today’s value, using a cost of equity of 9.7%. Tencent’s share price history began on the Hong Kong Stock Exchange (HKEX) on 16 June 2004, listed under the ticker symbol ‘0700’. The company’s initial public offering (IPO) was priced at$3.70 HKD per share.
- These products are not suitable for everyone and you should therefore consider your objectives, financial situation, needs and experience with these products before investing in them.
- A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.
- The company’s initial public offering (IPO) was priced at$3.70 HKD per share.
Advertisement budgets are typically a good indicator of the business cycle. Please bear with us as we address this and restore your personalized lists. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation.
Not everyone wants to be an active stock picker, especially when it comes to investing internationally. Thanks to exchange-traded funds (ETFs), you don’t have to actively manage a portfolio of stocks. You can passively invest in an ETF that holds stocks based around a common theme list of brokers by my forex news detailed reviews & analysis or broad market index, such as Chinese stocks.
More than that, efficiencies are improving inside the company, as gross profits grew by a larger rate of 21% as a result of lower selling costs. Founded in 1998 by Ma Huateng, Zhang Zhidong, Xu Chenye, Charles Chen, and Zeng Liqing, Tencent is a multinational technology and entertainment conglomerate headquartered in Shenzhen, China. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. You need to make sure your portfolio matches your risk tolerance, return expectations, and values. Additionally, Tencent is traded on the Hong Kong Stock Exchange – which is open Monday to Friday – where it’s listed under the symbol, ‘0700’. Select to analyze similar companies using key performance metrics; select up to 4 stocks.
Complementing its consumer offerings, Tencent Cloud delivers infrastructure, AI and big-data solutions to businesses, supporting industries from e-commerce to healthcare. The company also generates revenue through online advertising and value-added services, leveraging its vast user base and data insights. By 2024, Tencent’s share price saw renewed growth as its overseas gaming revenue surged, influenced by successful global launches and strategic investments in AI and cloud computing. Strong quarterly earnings, fuelled by hit game releases or growth in WeChat Pay usage, can lead to share price gains.
Net income, attributable to shareholders, grew by as much as 82% over the past 12 months, leading to an 85% advance in earnings per share (EPS). Price and value are often not the same thing, and the disconnect couldn’t be more obvious today than what investors can find in Tencent stock. Looking at what makes the business tick, here is what investors could – and should – focus on before dismissing the company just for being in China. Companies delivering rising profitability tend to grow shareholder value over the long term. The platform enables users to send messages, share photos and videos, shop online, and make payments. Tencent had more than 1.3 billion monthly active users of WeChat/Weixin at the end of 2023.
