When you trade a CFD, you don’t own that asset – in this case, Tencent shares. CFDs are traded on margin, which magnifies both potential gains and potential losses. 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.
Sector
Tencent developed and owns WeChat – one of the most widely used apps globally – which combines messaging, social networking, and payment services. The company also operates Tencent Games, which develops and publishes popular titles such as Honor of Kings. Tencent’s investment portfolio includes stakes in Epic Games, Tesla, and Activision Blizzard.
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CFDs are traded on margin, which means that you can get exposure to larger positions with a relatively small outlay. However, leverage can amplify both your profits and losses, making such trading risky. You can learn how to trade shares CFDs in our comprehensive guide to shares CFD trading.
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Ma Huateng, Tencent’s co-founder and CEO, has a significant personal shareholding. As people turned to digital entertainment and online services, Tencent’s share price rose, hitting an all-time high of $714.90 HKD in February 2021. But the momentum did not last, as tightening regulations in China’s tech sector, coupled with global economic uncertainty, contributed to increased volatility in 2022. 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. top free forex charting software for 2024 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.
User growth should lead to further monetization, and it did for Tencent’s advertising revenue. After all, the stock is down over 4% even after releasing an explosive quarter, so there could be danger up ahead. CFDs are complex financial instruments that derive their value from an underlying asset.
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- Tencent also employs AI for content moderation, personalised recommendations, chatbot development, and improving user engagement on its social media platforms.
- After all, the stock is down over 4% even after releasing an explosive quarter, so there could be danger up ahead.
- Net income, attributable to shareholders, grew by as much as 82% over the past 12 months, leading to an 85% advance in earnings per share (EPS).
- Insiders and management also have something to add about Tencent’s future outlook.
What factors might affect the Tencent live stock price?
- We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period.
- Despite these positives, macroeconomic challenges and weak consumer demand in China slowed Tencent’s stock price recovery.
- Over the years, Tencent has expanded its offerings to include a diverse portfolio of digital services, catering to both individual consumers and enterprise clients.
- Looking at what makes the business tick, here is what investors could – and should – focus on before dismissing the company just for being in China.
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Enter your email address and we’ll send you MarketBeat’s guide to investing in 5G and which 5G stocks show the most promise. Since then, TCEHY shares have increased by 20.0% and is now trading at $63.83. Tencent is one of the world’s largest companies by market capitalisation, as of January 2025. These 20 stocks are working on everything from early diagnostics to drug discovery.
Learn all about Tencent and its stock price history, with trading hours and how to trade Tencent via CFDs. The company’s innovation business includes artificial intelligences, such as robotics and quantum computing; and enterprise and next-generation technologies for food production, energy creation, and water management applications. Whether Tencent is a good stock to buy depends on your personal trading strategy and the market environment. Factors to consider include Tencent’s financial performance, the regulatory landscape in China, and broader macroeconomic conditions. To trade Tencent stock CFDs with us, just sign up for a Capital.com account, and once you’re verified, you can use our advanced web platform or download our intuitive yet easy-to-use app. Alternatively, you can trade a derivative product such as a contract for difference (CFD) on the underlying Tencent stock market price, and speculate on its price movements without actually owning the asset.
The Chinese company makes annual dividend payments to shareholders in Hong Kong dollars. In March 2024, the company proposed to increase its annual dividend based on its 2023 results by 42% to HKD3.40 per share ($0.43 per share). Insiders and management also have something to add about Tencent’s future outlook. Over the past quarter, up to 200,000 shares were bought back from the open market in a program worth as much as $4.7 billion. These efficiencies and Tencent’s ability to grow despite a slowed economy resulted in near triple-digit growth for the one metric investors care about the most.
Investors interested in Tencent need to weigh whether its upside potential is worth the risk. As of mid-2024, shares of Tencent listed on the OTC Markets Exchange had delivered a 14.8% annualized total return over the past decade, outperforming the S&P 500 during that period (12.7% annualized total return). Shopify is a leading global commerce company that provides merchants with a portfolio of solutions.
Trader sentiment and buybacks
First, you can buy physical shares in the company through the exchange on which it’s listed. In this case, investing in Tencent stocks means you will own a share, or shares, in the company. This can be considered a long-term investment, as you’re hoping for the price to rise over time. In 2018, regulatory tightening in China’s gaming sector, including a freeze on new game approvals, weighed heavily on the share price. This regulatory environment continued to create headwinds in subsequent years, with geopolitical tensions and crackdowns on technology firms in 2021 leading to further declines.
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For example, better-than-expected earnings in 2024 driven by overseas gaming revenue led to a stock price increase. But weaker-than-expected results or challenges in key areas can dampen sentiment, such as delays in game approvals or slower adoption of its AI initiatives. When China’s economy rebounded post-lockdowns, Tencent’s gaming and fintech revenue grew significantly, reflecting stronger consumer activity.
The best part – they are all under $10bn in marketcap – there is still time to get in early. 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. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… Advertisement revenue grew by 19% in the quarter and 13% over the year, which is also a significant sign of financial conditions for businesses in China.
We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. There is still a lot of work to be done, but it is starting to look like the technology sector in China’s stock market could soon be about to pose a recovery. There are not too many investors brave enough to venture into overseas markets, let alone China, given the current geopolitical tensions that negatively affect business valuations in the region. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
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