Tencent TCEHY Stock Forecast and Price Target 2025

Besides, that existing metric doesn’t consider the value of the vast investment portfolio ($117 billion ) the company owns. Adjusting for these investments would result in an even lower price-to-earnings ratio. Tencent had been a hallmark of consistent and sustainable growth, with an unbroken track record of growth since it went public in 2004. So when the tech company reported that its revenue and operating profit fell by 1% and 13%, respectively, in 2022, investors would have found it difficult to swallow. For example, if you have $1,000 to invest, you can start by building a portfolio of around 10 stocks, investing roughly $100 in each stock. You can grow from there as you add money to your account and become more comfortable investing in the stock market.

Consensus Price Target

« The combination of increasing AI adoption and relatively low valuations positions Chinese tech for potential outperformance. » Select to analyze similar companies using key performance metrics; select up to 4 stocks. Please bear with us as we address this and restore your personalized lists. If that’s not enough, Tencent has proven to be an excellent tech investor, having bought stakes early on in what have become some of the region’s most prominent companies.

• Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.
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• We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
• You’ll want to open and fund a brokerage account before buying shares of any company.
• Unfortunately, political risks are unavoidable when investing in Chinese companies.
• Matt DiLallo has no position in any of the stocks mentioned.

Before making your first trade, you’ll need to determine a budget for how much money you want to invest. You’ll then want to figure out how to allocate that money. The Motley Fool’s investing philosophy recommends building a diversified portfolio of 25 or more stocks you plan to hold for at least five years. Tencent’s diversified portfolio of leading technology and e-commerce businesses has many people interested in learning about its stock. This guide will teach you everything you need to know about Tencent and how to invest in the Chinese tech stock. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.

• But many of these tech companies are large, highly innovative, and can grow earnings nicely, all while trading at cheaper valuations.
• Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004.
• However, investing in a Chinese company like Tencent is riskier than investing in a U.S.-listed stock.
• 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.
• And they use it not only for communication but also to access services such as online payments, ride-sharing, public transportation, entertainment, online gaming, and more.
• It also publishes some of the world’s most popular video games.
• Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.

Patient investors with investing horizons of more than five years should consider buying some shares. Like most Chinese stocks, Tencent Holdings (TCEHY 6.49%) has been on a rough ride in recent years. After its share price reached an all-time high of nearly $100 in 2021, it lost almost three-quarters of its value, and it’s still down by more than half. However, investing in a Chinese company like Tencent is riskier than investing in a U.S.-listed stock. Investors need to carefully consider the added risks before adding Tencent to their portfolio. It developed the popular WeChat app and several other leading digital platforms.

Tencent Company Profile

Pinduoduo, JD.com, Meituan, and Sea are just some examples. With its dominant market position, Tencent has plenty of opportunities to profit from its lexatrade review 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, 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.

Tencent Holdings

The open-source Hunyuan3D 2.0 is expected to lower barriers to entry for using AI models across video gaming, social media and other sectors. At least three other companies including those backed by Alibaba and Tencent released updates to their applications in recent weeks. The point of the symposium is said to discuss ways https://www.forex-world.net/ to boost private sector sentiment. The meet will also include Alibaba co-founder Jack Ma, Tencent CEO Pony Ma, as well as other Chinese business lead…

Latest news about Tencent Holdings Limited

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.

It delivered respectable first-quarter 2023 results, with revenue and operating profit up by 11% and 9%, so the worst is probably over for the company. Matt Finance derivatives examples DiLallo has no position in any of the stocks mentioned. You need to make sure your portfolio matches your risk tolerance, return expectations, and values. A big part of Tencent is its uber-popular WeChat/Weixin super app.

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.

TCEHY Stock Analysis – Frequently Asked Questions

In many ways, Tencent is like many of the top U.S. technology companies all rolled into one. Because of the country’s economic struggles, Chinese tech stocks have not enjoyed the same run as U.S. stocks. But many of these tech companies are large, highly innovative, and can grow earnings nicely, all while trading at cheaper valuations.

Tencent Holdings Limited (HKG:

Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People’s Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. In addition, the company operates innovation business, which includes artificial intelligences; and discover and develops enterprise and next-generation technologies for food production, energy, and water management application. Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004. The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China.

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.