In mid-2024, Tencent’s dividend yield was less than 1% (given its share price and the exchange rates at the time), less than the S&P 500’s roughly 1.4% dividend yield. Given Tencent’s lower yield, annual payment schedule, and the risk of foreign exchange rate fluctuations, it’s likely not a very appealing option for most dividend-focused investors. As the AI market heats up, investors who have a vision for artificial intelligence have the potential to see real returns.
Learn about the industry as a whole as well as seven companies that are getting work done with the power of AI. We are skeptical of the suggestion that the 0.7% dividend yield would entice buyers to the stock. We think that the revenue growth of 7.4% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting.
- We aim to bring you long-term focused analysis driven by fundamental data.
- The advantage of cheaper valuations is that they can get going quickly on any good news, which is why many investors are starting to look internationally as U.S. valuations remain elevated.
- While Tencent currently has a “Strong Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
- Trading with eToro by following and/or copying or replicating the trades of other traders involves a high level of risks, even when following and/or copying or replicating the top-performing traders.
- Patient investors with investing horizons of more than five years should consider buying some shares.
- It is quite natural for a company of that size to find it challenging to sustain high growth rates.
How to invest
Usually, shares of a company of Tencent’s caliber won’t come cheap. But this stock — still down by more than half from its 2021 peak — is currently trading at a reasonable valuation. But the bigger culprits were external factors such as China’s economic weakness, which was caused in part by that nation’s extended and strict COVID lockdowns. Other Chinese government policies also hurt Tencent’s financials in 2022.
It’s also a testament to Alibaba’s AI capabilities because Apple reportedly considered technology and AI models from several other large Chinese tech companies. The emergence of DeepSeek and the potential for AI language models to be built more efficiently has some investors taking another look at Chinese tech stocks, which have performed well as of late. The Hang Seng Index has rocketed nearly 16% over the last month despite continued struggles in China’s economy from deflationary pressure and an ailing property sector. Analysts like Tencent more than other “computer and technology” companies. The consensus rating for Tencent is Strong Buy while the average consensus rating for “computer and technology” companies is Moderate Buy. Based on 1 Wall Street analysts who have issued ratings for Tencent in the last 12 months, the stock has a consensus rating of “Strong Buy.” Out of the 1 analysts, 1 has given a strong buy rating for TCEHY.
Investing Tools
- The business’s fifty day moving average is $52.23 and its 200-day moving average is $51.58.
- Once you complete the order page, click to submit your trade and become a Tencent shareholder.
- The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China.
- However, Chinese companies have higher risk profiles than those listed in the U.S. due to geopolitical concerns, foreign exchange rate fluctuations, and governance differences.
- “The combination of increasing AI adoption and relatively low valuations positions Chinese tech for potential outperformance.”
- As part of your research, make sure your selected broker allows you to buy shares that trade on the OTC Markets Exchange.
They’ve enabled it to grow into an immensely profitable company. Tencent didn’t https://www.forex-world.net/ have an upcoming stock split as of mid-2024. The company has split its stock once since its public listing. At the time, Tencent President Martin Lau commented on the reasoning behind the split, stating, “We hope to lower the investment threshold for investors.” They enable companies to fund their operations and expansion. Companies delivering rising profitability tend to grow shareholder value over the long term.
Percentage of Shares Shorted
Pinduoduo, JD.com, Meituan, and Sea are just some examples. With its dominant market position, Tencent has plenty of opportunities to profit from its captive users. To keep making money from its ecosystem, all it has to do is ensure that it remains the preferred communication platform in China. Fortunately, it is the only game in town, paxful review and it could keep that position for a while. Tencent’s 2022 results might have disappointed its longtime shareholders, but make no mistake. On a slightly positive note, Tencent has somewhat recovered from its 2022 woes.
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MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… They believe these five stocks are the five best companies for investors to buy now… In other words, Tencent has twin engines of internal business and external investments to keep its growth machine humming. Besides, in the name of common prosperity, the government has indirectly extracted 100 billion yuan (about $15.5 billion) from Tencent.
For example, its regulatory crackdowns on the online education and tech industries have severely impacted Tencent’s advertising and cloud income. While its shareholders suffered during that period, contrarian investors can consider its aftermath an opportunity to buy shares of one of the best companies in China for cheap. Trading with Alligator indicator eToro by following and/or copying or replicating the trades of other traders involves a high level of risks, even when following and/or copying or replicating the top-performing traders. Such risks include the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of his future performance.
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It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. It’s a publicly traded company that trades in the U.S. on the OTC Markets Exchange. However, you need a brokerage account that allows you to buy and sell shares listed on the OTC Markets Exchange. If you don’t have a brokerage account (or your current broker doesn’t allow trading of OTC stocks), check out this list of top online brokers and trading platforms.
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With innovative investment tools and a collaborative trading community, eToro empowers millions of users in over 100 countries to trade and invest in a simple and transparent way. On the back of a solid 7-day performance, let’s check what role the company’s fundamentals have played in driving long term shareholder returns. MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.