Tencent Stock Review (FY 2020)
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Chinese stocks have come under intense scrutiny. Increased regulation by the Chinese government over the last few months is scaring many investors away and sent Chinese stocks tumbling. The MSCI Emerging Markets Index (which has major exposure to Chinese securities) was down by -20 % from its peak in February and is only slowly recovering. Yet – as some investors wisdom goes – inside of every risk lies an opportunity. Therefore, in this stock review, we will analyse Tencent which is the worlds largest company in the area of gaming, social media and online marketing. The tech giant has its headquarters in the megacity of Shenzhen in China. Learn more in this stock review.
Table of Contents
Qualitative Analysis
Tencent Company History
Tencent was co-founded in 1998 by Ma Hauteng and Zhang Zhidong. Ma Hauteng still serves as the CEO of Tencent and Zhang Zhidong is the company’s Chief Technology Officer. Tencent gained fast popularity among a wider public in Asia due to its first breakthrough product, “Tencent QQ” – an online instant messenger similar to ICQ, which enabled Tencent to generate profits almost immediately. Over the years, Tencent expanded its business continuously and started several joint ventures (for instance with Cisco Systems). Additionally, Tencent acquired Riot Games, the original creator of “League Of Legends” and owns about 5% in shares of Activision Blizzard.
Yet, Tencent did not only stick to the gaming industry in its expansion efforts. Over the years, Tencent acquired additional holdings in the Future Mobility Corporation (Electronic Car development) as well as a 5% of the shares of Tesla. Additionally, the company acquired Lflix, which is also referred to as the “Asian Netflix”. Further shareholdings include Spotify (7.5 %), Snapchat (12.1 %) and Ubisoft (5 %). Due to its acquisitions in companies across various industries, Tencent has evolved to sort of a Conglomerate in the technological sector.
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Tencent Business Model
Tencent SWOT Analysis
Tencent Co-Founder & CEO: Ma Hauteng
Quantitative Analysis
Tencent roovestor company score
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Disclaimer
We assume no liability for the accuracy of the financial data. Sources of the financial data are foremost IR websites of the company subject to the analysis. Additionally we rely on further data and information from Thomson Reuters EIKON. Moreover, unless better data is available, we do our own calculations of available data for KPI determination. Our stock analyses are by no means to be understood as a buy or sell recommendation and do not provide any conclusions regarding the future development of the company (and thus the future price development of the share).