Why is Tencent losing value?

Shares of the online gaming company have tumbled 64% in Hong Kong since a January 2021 peak, wiping $623 billion off its market value. That's more than any other firm globally, driven by concerns about Tencent's outlook after Beijing's yearlong regulatory crackdown.

Why are Tencent stocks falling?

Tencent stock has dropped alongside much of the rest of the Chinese tech sector this year. Shares in Chinese tech giant Tencent fell Friday—and it had little to do with regulatory pressures or worries about Covid-19 in China. Instead, it's about another company's plan linked to shares in food delivery group Meituan .

What is the downfall of Tencent?

The decline in valuation has robbed the company of its title of China's biggest company, replaced by liquor giant Kweichow Moutai. Shares of Tencent have tumbled 64% in Hong Kong since a January 2021 peak, wiping $623 bn off its market value by September 2022.

What problems does Tencent have?

The Shenzhen-based company said corruption was "more severe" than in 2021, when over 70 employees were fired over similar violations. As a result, Tencent has blocked 23 companies from doing business with it.

How much value has Tencent lost?

Tencent has lost $650 billion in value since early last year, and it's now smaller than a liquor company. Tencent shareholders drown their sorrows as Chinese tech crackdown makes it less valuable than a... A hostile environment for Chinese tech companies has seen Tencent undergo a big reversal of fortunes.

China destroyed its tech giants. Here's why.

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.

Will Tencent go up again?

Conclusion. I think that Tencent continue to have strong growth drivers across all its main businesses. With improvements in the macroeconomic environment, relaxing of covid-19 measures in China and China's renewed focus on growth, we will see a strong ads revenue growth in 2023, in my view.

What is the dark side of 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.

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.

Is Tencent shutting down?

Tencent is shutting down its video game streaming platform months after Beijing shut down a huge merger that would have made the Chinese internet giant a major player in the area. The service Penguin Esports will shut down from June 7, Tencent said, citing a change of business strategy.

What is the future outlook for Tencent?

Stock Price Forecast

The 53 analysts offering 12-month price forecasts for Tencent Holdings Ltd have a median target of 53.65, with a high estimate of 65.15 and a low estimate of 31.85. The median estimate represents a +20.86% increase from the last price of 44.39.

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.

Who owns the most Tencent stock?

Is Tencent a good long term investment?

And even when calculating with rather cautious assumptions, Tencent still seems to be undervalued and a good long-term investment.

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 are Chinese stocks not doing well?

It's been a tough couple of years for Chinese stocks. The Covid pandemic, and Beijing's zero-Covid policy, have slammed the economy. Meanwhile, regulatory crackdowns vs. technology and data-centric firms such as Alibaba (BABA), Tencent (TCEHY) and NetEase (NTES) have been a major headwind.

How much of Tencent is owned by China?

The gaming and social networking behemoth and the state-owned carrier have received regulatory approval to set up a joint venture, according to a government announcement. Following the transaction, Tencent and China Unicom will respectively own 42% and 47% of the firm.

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.

Who is Tencent competitor in China?

Tencent's competitors and similar companies include Meta, IAC, Sea, iQIYI, NetEase, Meituan and Agora. Tencent (腾讯控股有限公司就腾讯公) is an investment holding conglomerate whose subsidiaries specialize in various Internet-related services and products, entertainment, artificial intelligence, and technology.

Is TikTok under Tencent?

Does Tencent own TikTok? Tencent Holdings, a Chinese multinational conglomerate, is an investor in ByteDance but does not have a majority stake in or control over TikTok. ByteDance was founded outside Tencent's portfolio and has even been sued by Tencent over its news and content aggregation platform Toutiao.

What company owns Tencent?

South African media company Naspers purchased a 46.5% share of Tencent in 2001. As of 2021, it owns 30.86% through Prosus, which also owns a stake in Tencent's sister companies, such as OLX, VK, Trip.com Group, Delivery Hero, Bykea, Meesho, Stack Overflow, Udemy, Codecademy, Brainly and PayU.

Is Tencent reputable?

Tencent has an overall rating of 4.0 out of 5, based on over 2,012 reviews left anonymously by employees. 75% of employees would recommend working at Tencent to a friend and 61% have a positive outlook for the business. This rating has decreased by -3% over the last 12 months. Does Tencent pay their employees well?

Will China stocks ever recover?

China is likely to see further improvement in the data as it continues to recover from a weak 2021 and 2022. In that sense, China also provides a notable diversification benefit. "Despite the recent rally in Chinese equities, the country's slower long-term growth rate is more than adequately priced."

How much debt does Tencent have?

Tencent Holding long term debt for the quarter ending June 30, 2021 was $40.504B, a 62.79% increase year-over-year. Tencent Holding long term debt for 2020 was $33.936B, a 25.02% increase from 2019. Tencent Holding long term debt for 2019 was $27.143B, a 29.48% increase from 2018.

Will tech stocks recover in 2023?

Taking a deeper look into the Nasdaq-100 Technology Sector Index (NDXT), we can see that 2023 so far has brought a degree of cautious optimism back to the market's performance, with around 20% growth recorded in Q1. It's also worth noting that the NDXT is still some 30% adrift from its November 2021 peak.