Tencent Holdings Ltd. has lost its title as China’s biggest company to liquor giant Kweichow Moutai Co., the latest sign of how far regulatory risk and dimming growth prospects has set back the country’s technology industry.
Shares of the online gaming company have tumbled 64% in Hong Kong since a January 2021 peak, wiping $623 billion off its market value. That’s more than any other firm globally, driven by concerns about Tencent’s outlook after Beijing’s yearlong regulatory crackdown. As of the Hong Kong close on Friday, the company was valued at about $5.4 billion less than Moutai.
FAQs
Shares of the online gaming company have tumbled 64% in Hong Kong since a January 2021 peak, wiping $623 billion off its market value. That's more than any other firm globally, driven by concerns about Tencent's outlook after Beijing's yearlong regulatory crackdown.
Why did Tencent fall? ›
In a call with media, Tencent president Martin Lau said the company saw a slowdown in gaming revenue last quarter partly because many zealous gamers had already spent on their games in the first quarter last year when China moved to lift all COVID-19 restrictions.
How much has Tencent lost value? ›
Tencent lost over $40 billion in value after its shares crashed in Hong Kong trading. China's video gaming industry thought it had made it through Beijing's government crackdown.
Why is Tencent stock so low? ›
Tencent stock (OTC:TCEHY) may have found a bottom after enduring a long downtrend. With a 29% dip in the past year and a 65% decline from its 2021 high, China's social media and tech giant has underperformed the market. The ongoing downturn echoes a broader trend of pressure on Chinese equities.
What is the prediction of Tencent? ›
Based on 13 Wall Street analysts offering 12 month price targets for Tencent Holdings Limited in the last 3 months. The average price target is HK$418.12 with a high forecast of HK$507.00 and a low forecast of HK$300.00. The average price target represents a 37.63% change from the last price of HK$303.80.
Does China own Tencent? ›
Tencent Holdings Ltd.
(Chinese: 腾讯; pinyin: Téngxùn) is a Chinese multinational technology conglomerate and holding company headquartered in Shenzhen. It is one of the highest grossing multimedia companies in the world based on revenue.
What is the Tencent controversy? ›
Tencent faced intense scrutiny in 2021 when tech influencer Hackl0us said on social media platform Weibo that the app periodically accessed user photos while running in the background. The activity was discovered using Apple's “Record App Activity” feature on its iOS 15 operating system at that time.
Does Tencent own TikTok? ›
Does Tencent own TikTok? Tencent Holdings, a Chinese multinational conglomerate, is an investor in ByteDance but does not have a majority stake in or control over TikTok. ByteDance was founded outside Tencent's portfolio and has even been sued by Tencent over its news and content aggregation platform Toutiao.
How rich is the owner of Tencent? ›
Ma has been compared to famed American investor Warren Buffett for their similar investment approaches, and often described as an "aggressive acquisitor." As of September 2023, he has a net worth of US$37.5 billion according to Bloomberg Billionaires Index, ranking him as the 33rd wealthiest person in the world.
Where does Tencent make most of its money? ›
Tencent is one of China's largest technology companies, offering e-commerce, cloud computing, entertainment, internet platforms, operational platforms, and business ecosystems. The company generates over half of its revenue from social media services, music subscriptions, and games.
This is a listing of largest video game publishers and developers ranked by reported revenue. Sony Interactive Entertainment is the world's largest video game company, followed by Tencent and Microsoft Gaming.
Is Tencent a buy now? ›
Tencent Holdings Limited's analyst rating consensus is a Moderate Buy. This is based on the ratings of 2 Wall Streets Analysts.
Is Tencent a buy or sell? ›
Tencent has received a consensus rating of Moderate Buy.
Does Tencent use AI? ›
By using multiple AI technologies such as voice interaction and digital model generation, Tencent Cloud AI Digital Human has synchronized lip movements and pronunciation, and natural expressions and motions.
What is the success of Tencent? ›
It has obtained patents for technologies in several areas - gaming, instant messaging, e-commerce, online payment services, information security and search engines. The company invested 100 million in establishing China's first Internet research institute, 'Tencent Research Institute'.
Why does Tencent have a bad reputation? ›
Privacy advocates have found that Tencent has shared the conversations of users of their applications with the Chinese government. The company has also used artificial intelligence to identify and block user-created images created to get around government censorship by Chinese citizens.
What issues has Tencent had with the American government? ›
Collaboration between Tencent and the Chinese government has caused concern over the data of international users, leading Trump to attempt to ban WeChat. “Like TikTok, WeChat automatically captures vast swaths of information from its users.
Is Tencent stock a good buy? ›
Tencent Holdings Limited has 11.52% upside potential, based on the analysts' average price target. Is TCEHY a Buy, Sell or Hold? Tencent Holdings Limited has a conensus rating of Moderate Buy which is based on 1 buy ratings, 1 hold ratings and 0 sell ratings.
Is Tencent doing well? ›
Tencent's shares have risen about 5% over the past two months while the Hang Seng Tech Index has gained 12%. The broader internet sector has suffered a hit to advertising from China's economic slowdown as well as sporadic regulatory crackdowns, and Tencent has also been hurt by an absence of major new game titles.
