Tencent, the Chinese internet giant, is facing significant financial challenges as evidenced by recent reports and analyses. Its shares have dramatically plummeted by about 60% from their peak three years ago, with an upcoming earnings report this Wednesday expected to potentially provide some positive catalysts. Despite a decline in revenue, Tencent Music managed to report profits of $735 million. However, Tencent's overall sales have been disappointing, attributed to a pervasive slowdown in the Chinese economy. The company has posted its weakest revenue growth in years and announced plans to double its buyback efforts. This comes alongside a projection of modest revenue growth in the final quarter of 2023, with expectations set at 9%, compared to the more robust growth rates of other Chinese tech companies. Additionally, Tencent's annual profit has hit its lowest since 2019, signaling a period of financial strain for the tech giant.
Chinese internet giant Tencent posts lowest annual profit since 2019 https://t.co/PBxnFTsUqR
Tencent - 15x PE (incl Investments) Repurchases + Divs c 5% 👀 Online ads VAS business (high correlation to China macro + AI upgrades (engagement and targeting). 👀 $APP and $META when they got Advertising + AI humming. Upside? Ad load is only 3% (western peers at 10%).
China's Tencent posts weak revenue growth, plans to double buybacks https://t.co/plMiqknkBD https://t.co/5nuCI0EURa
Tencent Sales Disappoint After Pervasive Chinese Slowdown Bites - BBG https://t.co/k9gzwot0B3
Will be watching three China Tech earnings today, and here's their projected revenue growth in 2023's final quarter: Tencent: 9% Kuaishou: 15% PDD: 101% ‼️‼️
Tencent Music Profits Reach $735 Million, Despite Revenue Decline https://t.co/OO9WONlQmR
Tencent’s earnings report due Wednesday may provide positive catalysts for its shares, which have plummeted about 60% from their record high three years ago https://t.co/Qu0TAPIetz