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- On the financial technology front, Tencent’s WeChat ecosystem integrates WeChat Pay, enabling seamless mobile payments and digital wallet services that are widely adopted in daily transactions across China.
- 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.
- Learn all about Tencent and its stock price history, with trading hours and how to trade Tencent CFDs.
Tencent is a publicly traded company listed on the Hong Kong Stock Exchange. In addition, the Chinese e-commerce giant has a U.S. listing on the OTC Markets Exchange, where it trades under the stock ticker TCEHY. 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.
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A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade. The Chinese government’s decision to approve new gaming licenses in late 2022 marked a turning point, boosting Tencent’s revenue from its core gaming division. Despite these positives, macroeconomic challenges and weak consumer demand in China slowed Tencent’s stock price recovery.
More than that, efficiencies are improving inside the company, as gross profits grew by a larger rate of 21% as a result of lower selling costs. Founded in 1998 by Ma Huateng, Zhang Zhidong, Xu Chenye, Charles Chen, and Zeng Liqing, Tencent is a multinational technology and entertainment conglomerate headquartered in Shenzhen, China. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. You need to make sure your portfolio matches your risk tolerance, return expectations, and values. Additionally, Tencent is traded on the Hong Kong how to use the accelerator oscillator Stock Exchange – which is open Monday to Friday – where it’s listed under the symbol, ‘0700’. Select to analyze similar companies using key performance metrics; select up to 4 stocks.
The internet and technology company reported $80.6 billion in total revenues in 2023, up 10% from 2022. Its profit attributable to equity holders after stripping out one-time or non-cash items was $22.3 billion, a 36% increase from 2022. Even after including those items, Tencent posted $16.3 billion of profit attributable to equity holders in 2023 (although that was down 39% from 2022’s level). To trade Tencent share 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. It’ll take just a few minutes to get started and access the world’s most-traded markets.
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). Price and value are often not the same thing, and the disconnect couldn’t be more obvious today than what investors can find in Tencent stock. 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. Companies delivering rising profitability tend to grow shareholder value over the long term. The platform enables users to send messages, share photos and videos, shop online, and make payments. Tencent had more than 1.3 billion monthly active users of WeChat/Weixin at the end of 2023.
Investing in Tencent FAQ
Make sure everything is correct, and then submit your trade to become a Tencent shareholder. Once you complete the order page, click to submit your trade and become a Tencent shareholder. Sign up for MarketBeat All Access to gain access to MarketBeat’s full suite of research tools. Please log in to your account or sign up in order to add this asset to your watchlist.
It also planned to double the size of its share repurchases to around 100 billion Hong Kong dollars in 2024 ($12.8 billion at the exchange rate in mid-2024). The company was able to significantly increase its cash returns while continuing to invest heavily in its business. Tencent’s live stock price may be influenced by a range of unique and sector-specific factors, including market sentiment, macroeconomic conditions, and regulatory developments.
Financial Highlights
The Online Advertising segment is mainly engaged in media advertising, social and other advertising businesses. The FinTech and Business Services segment mainly provides commercial payment, FinTech and cloud services. The Others segment is principally engaged in the investment, production and distribution of films and television program for third parties, copyrights licensing, merchandise sales and various other activities. This momentum saw its stock price hit a record high of HK$405.24 in November 2017, driven by growing revenues and trader optimism around its market dominance. On the financial technology front, Tencent’s WeChat ecosystem integrates WeChat Pay, enabling seamless mobile payments and digital wallet services that are widely adopted in daily transactions across China.
Services
These products are not suitable for everyone and you should therefore consider your objectives, financial situation, needs and experience with these products before investing in them. Our Product Disclosure Statement (PDS) and Target Market Determination provides important information about our products and who our products are more likely to be suited to. Capital.com does not provide financial or investment advice and you should seek independent advice if you are unsure of the risks or whether our products are suitable for you. Tencent is not classified as a ‘pure-play’ AI stock like C3.ai, but artificial intelligence (AI) is prevalent across the business. The Tencent AI Lab, established in 2016, focuses on areas such as machine learning, computer vision, speech recognition, and natural language processing (NLP). These technologies are integral to its products, such as WeChat’s services, and AI-powered in-game features.
In the same way as with the 10-year ‘growth’ period, we discount future cash flows to today’s value, using a cost of equity of 9.7%. Tencent’s share price history began on the Hong Kong Stock Exchange (HKEX) on 16 June 2004, listed under the ticker symbol ‘0700’. The company’s initial public offering (IPO) was priced at$3.70 HKD per share.
- The Chinese company makes annual dividend payments to shareholders in Hong Kong dollars.
- Factors to consider include Tencent’s financial performance, the regulatory landscape in China, and broader macroeconomic conditions.
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- However, noticing the type of growth Tencent is delivering currently, which is near triple-digits, these forecasts could be on the conservative end of the spectrum.
- The Chinese government’s decision to approve new gaming licenses in late 2022 marked a turning point, boosting Tencent’s revenue from its core gaming division.
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In response to the US Department of Defense’s designation, Tencent executed its largest share buyback since 2006 in January 2025, repurchasing approximately 4.05 million shares for $193.3 million. This move aimed to stabilise Tencent’s stock price following its designation by the US as a Chinese military company. If Tencent’s buybacks are perceived as a reaction to declining fundamentals rather than a sign of confidence, traders may remain cautious, limiting their positive impact. In addition, Tencent provides a range of services, including cloud computing, advertising, and financial technology. In many ways, Tencent is like many of the top U.S. technology companies all rolled into one.
But increased competition from domestic and international players could eat up Tencent’s market share. Rivalry with platforms like ByteDance or the emergence of alternative payment solutions may divert users and revenue. It owns WeChat and QQ, two of the most popular messaging and social media platforms in China. Tencent Games, a division of the company, is one of the world’s largest gaming firms, producing titles like Honor of Kings. Tencent also holds large stakes in companies such as Epic Games, and Tesla, alongside other investments in AI, cloud computing, and fintech enterprises. Tencent’s share price may rise during periods of optimism, as seen during the pandemic-driven demand for digital services.
China Issued 383 Game Licenses in the First Quarter of 2025, a 5% Increase From Last Year
If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. While iShares MSCI China ETF currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. Wall Street analysts now forecast 19.1% EPS growth for Tencent in the next 12 months, which is still above China’s inflation rate and expected GDP growth rate. However, noticing the type of growth Tencent is delivering currently, which is near triple-digits, these forecasts could be on the conservative end of the spectrum. Revenue jumped by 8% over the year, which is impressive considering that China’s inflation rate has been lower than 1% for most – if not all – of that period.
The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Another key difference between buying physical Tencent shares and trading through a derivative is the leverage that can be employed with the latter. CFDs are traded on margin, which means that a trader can get exposure to larger positions with a relatively small outlay. In this scenario, both your profits and losses are amplified, making such trading risky. You can learn how to trade shares in our comprehensive guide to shares trading.