0347 GMT - Tencent may need a fully developed e-commerce ecosystem to unleash its advertising potential, Nomura analysts Jialong Shi and Rachel Guo say in a research note. Tencent's video accounts ads surged over 60% on year in 3Q, likely accounting for 17% of the company's total market services revenue, they say. Tencent has also relaunched Mini Shops for merchants to build their WeChat-based stores, through which the merchandise can be shared to and accessed by WeChat users across most app properties including video accounts. However, "it remains to be seen whether the WeChat team can implement it well" given Tencent's relatively poor track record with the e-commerce business, the analysts say. Nomura maintains its buy rating on Tencent and keeps its target at HK$500.00. Shares last at HK$410.20. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
November 13, 2024 22:47 ET (03:47 GMT)
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