American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Tencent stock price analysis: will it rebound in 2025?

by admin December 24, 2024
December 24, 2024
Tencent stock price analysis: will it rebound in 2025?

Tencent stock price had a good performance in 2024 as it became one of the best performers in the Hang Seng index. It has jumped by 40% this year, helped by the rebound in some prominent Chinese technology companies. So, what next for Tencent in 2025?

Tencent boosted by Beijing policies

Tencent and other large Chinese technology companies went through a painful period as Beijing tightened screws on the sector.

While Alibaba was the biggest victim of this crackdown on tech, other firms like Tencent were also affected. For example, Beijing authorities implemented policies that affected the gaming industry.

Most large Chinese tech companies did modestly well as Beijing ended the crackdown in its bid to improve the sector. Besides, tech is a pivotal sector for China now that the real estate sector has largely collapsed. 

For starters, Tencent is the biggest company in China with a market cap of near $500 billion. It is much larger than other tech firms like Alibaba, PDD Holdings, Meituan, and BYD.

The company’s business touches most people in China and around the world. For example, WeChat has over 1.38 billion users, making it one of the biggest social media companies globally.

Tencent also owns companies like Tencent Games, Tencent Video, Weishi, Tencent Music Entertainment, LiCaiTong, Tencent Portfolio, and Tencent Blockchain. It owns more companies across other sectors. 

Strong financial results

Tencent stock price also jumped as the company published moderately good financial results that showed steady revenue growth and profitability.

The most recent results showed that Tencent’s revenue rose by 8% in the third quarter to over 167 billion RMB. Most of this revenue came from its value-added services, which brought in over RMB 82.7 billion in revenue.

Tencent’s fintech and business services made RMB 53.1 billion, while its marketing services made RMB 30 billion, representing a 17% YoY growth.

Its gross profit jumped to RMB 88.8 billion, as its operating margin jumped from 33.4% to 36.6%. Net profits rose by 33% to over RMB59.8 billion.

These numbers meant that Tencent’s business was booming, which may continue in the coming years. For one, some of its games like Valorant, Honour of Kings, Peacekeeper Elite, and Delta Force have seen substantial growth in the past few months. The company is in talks to acquire Ubisoft, a major gaming publisher.

Additionally, Tencent is working on becoming a major player in the artificial intelligence space through its Weixin Search. As part of this, the company is in talks to collaborate with Apple and ByteDance in China.

The company’s music subscriptions jumped to over 119 million, while its video subscriptions rose to 116 million. 

Most importantly, like other top Chinese companies, Tencent has one of the healthiest balance sheets with a net cash position of $13.6 billion. With tech companies doing well, Tencent’s fair value of its listed investments stood at over $87 billion. Its unlisted investments are worth almost $50 billion. 

Altogether, there are signs that Tencent is a highly undervalued compared to its global peers like Amazon and Apple, which have become trillion-dollar companies.

Tencent stock price analysis

The daily chart shows that the Tencent share price staged a strong comeback, soaring from HKD 258 in January to RMB 482 in October. This recovery happened as Beijing softened its views on technology companies and as its business continued growing.

Tencent stock has moved above the key support at HKD 410, its highest level in January last year. It has also jumped above the 50-day moving average. The Average True Range (ATR) indicator has retreated slightly, a sign that its volatility is fading.

Therefore, the Tencent stock price will likely hold steady in the next few months and make a strong return in 2025. If this happens, the next point to watch will be at HKD 482.

The post Tencent stock price analysis: will it rebound in 2025? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
SLV ETF outlook: will the silver price rise or fall in 2025?
next post
Nikkei 225 index forecast amid Nissan and Honda merger

Related Posts

Successful Placement to Raise $750,000

June 28, 2024

Is Shopify stock price about to explode higher...

January 30, 2025

ARway.ai Releases SDK 3.0 Marking a Major Upgrade...

March 15, 2024

Fireweed Metals

February 21, 2024

Broadcom stock price has crashed: time to buy...

February 27, 2025

Gold and Nickel Exploration Update

April 10, 2024

PayPal stock price forecast: why PYPL is crashing,...

March 13, 2025

Flynn Gold

July 25, 2024

ZIM stock price forms a death cross as...

April 22, 2025

Suzlon Energy share price suffered a harsh reversal;...

October 29, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,012)
    • Investing (2,455)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved