Why did Tencent crash?

Tencent's stock suffered a sharp drop after the company reported its slowest-ever growth due to a bruising crackdown by China on the country's tech sector.

Why is Tencent crashing?

Tencent recorded its first-ever revenue drop in the quarter ended June and is expected to report negligible sales growth and a 34% drop in net income, according to analyst estimates. Online ad sales have been hit by China's economic slowdown and the bread-and-butter gaming division is facing stiffer competition.

What is the issue with Tencent?

Tencent and online censorship

Privacy advocates have found that Tencent has shared the conversations of users of their applications with the Chinese government. The company has also used artificial intelligence to identify and block user-created images created to get around government censorship by Chinese citizens.

What happened to Tencent in China?

Tencent Holdings Ltd. In 2021, CCP's infamous crackdown resulted in a $1.5 trillion value obliteration from its tech stocks, with Tencent dropping from about $700 billion market cap to $560 billion. 2022 turned out even worse, with the company currently valued at about $325 billion, losing over half its value YTD.

Will Tencent go back up?

We expect Tencent to retain strong liquidity, and its FCF generation to remain quite large and rise to over CNY100 billion in 2023. Depending on how it uses cash raised from divestments, Tencent could restore its net cash position earlier than we expect, which is by 2024.

The Rise and Fall of Tencent

Should I hold Tencent or sell?

Tencent has received a consensus rating of Hold. The company's average rating score is 2.20, and is based on 2 buy ratings, 2 hold ratings, and 1 sell rating.

Is Tesla owned by Tencent?

Tencent, known as one of the world's largest gaming and social media firms, invested in Tesla in 2017, taking a 5% stake for around $1.78 billion.

Is TikTok owned by Tencent?

Douyin, which like TikTok is owned by ByteDance, said in a statement it is now authorised to use Tencent Video content and rules about how secondary content can be generated have been clarified.

Who is buying Tencent?

China's government is buying Alibaba and Tencent shares that give the Communist Party special rights over certain business decisions, report says. The letter F. An envelope.

Is Tencent owned by Alibaba?

China's Alibaba and Tencent Are Merging

The Alibaba company Meituan.com and Tencent company Dianping.com, which have been competing in offering local services online, commonly said last Thursday they would merge.

Why did China suspend Tencent?

GUANGZHOU -- China's Tencent Holdings and other major gaming vendors in the country are shutting down their games nationwide on Tuesday in an apparent tribute to late President Jiang Zemin, amid Beijing's tightening oversight of the gaming industry.

Does Tencent still exist?

Tencent Holdings Ltd. (Chinese: 腾讯; pinyin: Téngxùn) is a Chinese multinational technology and entertainment conglomerate and holding company headquartered in Shenzhen.

Why Tencent is better than Alibaba?

Business Focus

One difference between Alibaba and Tencent is the percentage of their revenue coming from foreign (non-Chinese) markets. Only 7% of Alibaba's revenue comes from international sources, in Tencent's case it's 8%. This comparison favors Tencent.

What is the prediction of Tencent?

Stock Price Forecast

The 52 analysts offering 12-month price forecasts for Tencent Holdings Ltd have a median target of 57.45, with a high estimate of 64.97 and a low estimate of 31.85. The median estimate represents a +16.56% increase from the last price of 49.29.

Why are China tech stocks crashing?

The regulatory crackdown has been a big factor in giants posting slower growth rates and has hammered their stocks. Since the start of 2021, the Hang Seng tech index in Hong Kong, which includes most of China's tech giants, has fallen more than 50%.

Why China tech stocks are falling?

Regulatory Fines

The Chinese govt has been targeting top tech giants to check their dominant market positionings. The crackdown has resulted in billions being wiped away from the market capitalizations of big techs.

Who owns the most Tencent stock?

Why is Tencent buying everything?

Tencent is allegedly shifting its M&A strategy to "aggressively" focus on "buying majority stakes mainly in overseas gaming companies." As reported by Reuters, this change is in part due to Tencent's attempt to battle the slowing growth in its home country of China.

Who owns the most Tencent?

#1 Prosus. Prosus holds 29% of Tencent's shares, making it its largest shareholder. Prosus owns 2,765 million Tencent shares, representing 2,765 million shareholder votes. The market value of Prosus's stake in Tencent was $124.9 billion as of June 2022.

Is TikTok banned in China?

But the wildly popular platform, developed with homegrown Chinese technology, isn't accessible in China.

Who owns TikTok in USA?

TikTok is owned by the Chinese internet company ByteDance.

Who owns most of TikTok?

Zhang Yiming is a Chinese entrepreneur with an impressive list of accomplishments. He founded ByteDance in 2012 and followed it up with the video platform TikTok (Douyin) and the news and information content site Toutiao.

How does Tencent make money?

Tencent stock trades on the Hong Kong Stock Exchange while ADRs over-the-counter in the U.S. It operates e-commerce, cloud computing, entertainment, internet platforms, operational platforms, and business ecosystems. The company's revenue and profit have climbed steadily since it went public.

Does Tencent still own NIO?

While the company doesn't sell any of its vehicles in North America yet, it has attracted the interest of investors across the globe. The top institutional shareholders of NIO are Originalwish, Tencent Holdings, Baillie Gifford, BlackRock (BLK), and Vanguard Group.

Who does Tesla buy chips from?

3.1, the next generation of Tesla's FSD computer will be using chips manufactured by Taiwan Semiconductor Manufacturing Company Limited (TSMC).