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Investing $1,000 in Tencent Holdings Ltd (TCEHY) in 2019 Yields -14% Return

Investing $1,000 in Tencent Holdings Ltd (TCEHY) five years ago in 2019 would have resulted in a -14% return, with the investment decreasing to $864. At the start of the investment period in March 2019, TCEHY stock price was $43, and it is currently priced at $37. Looking back at the Q4 earnings report in 2018, Tencent reported earnings of 30 cents per share, beating the Zacks Consensus Estimate. Revenues were RMB 80.6 billion ($11.85 billion), showing a 24% year-over-year increase and 9% sequential increase. The combined Monthly Active Users (MAU) of Weixin and WeChat increased by 10.5% to 1.08 billion. QQ’s smart device MAU was 698 million, up by 6.9% year over year. For the fourth quarter, the Zacks Consensus Estimate for earnings was 28 cents, and revenues were expected to reach $12.33 billion, reflecting a 21.3% year-over-year growth. It is essential to consider various key factors when analyzing Tencent, such as the continued growth in MAUs, the evolution and adoption of features like Mini Programs and Weixin Pay, and the increasing revenues. Investors should focus on Tencent’s ability to innovate and expand its user base, as these factors directly impact the company’s financial performance and stock price. Additionally, monitoring Tencent’s competitive position within the industry, regulatory environment, and macroeconomic trends in China can provide insights into the potential direction of its stock price. As of the current date in 2024, with the stock price at $37, potential indicators to watch for would include updates on MAU growth, new product launches, expansion into new markets, and any regulatory developments that could impact Tencent’s operations. Observing these factors can help investors make informed decisions regarding the future performance of Tencent Holdings Ltd.

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