You can invest in tencent stock if you have an interest in gaming and the Chinese technology industry. Tencent is a leading online gaming and multimedia company headquartered in Shenzhen, China. The company is one of the highest grossing companies in the world. It has become a leading global brand in video games, social networking sites, and mobile applications.
However, there are several risks associated with Tencent stock. The company’s growth is slowing and costs are rising. Its operating margin is expected to tighten this quarter and be as low as 25.1% in the second quarter. In addition, the slowdown in China has hurt online ad sales. It also faces increased competition in its gaming division. This has led CICC to lower its price target for Tencent by 20%.
The company is a large and sprawling conglomerate with numerous businesses, including mobile gaming and social networking. The company has three main segments: gaming, content, utilities, and financial technology. The company’s recent performance has been negatively affected by slow gaming revenue growth and the crackdown by the Chinese government on online gaming. However, the company’s management is facing these challenges head-on and has signaled that the downturn could last for a while.
Tencent’s shares are available through various brokerages. The company is also traded on the Amsterdam Stock Exchange. Naspers, a South African investment firm, was one of the first investors in the company. It owns 28.9% of the company’s stock and has recently announced an aggressive share buyback arbitrage program. The company believes it is trading for less than Tencent and uses the money to fund its own buyback program. This provides investors with a double discount.