I will chose Tencent for swing trading..read on…

Why do I do so ?

Last year, for $TENCENT(00700)$ Tencent $ Tencent Holdings. HK is not easy. The successive decline of stock prices has triggered heated discussion in the market. Just as many people are worried about Tencent, Tencent's market value finally returned to the top ten in the world at the beginning of this year. Tencent Holdings's market value surpassed the oil giant ExxonMobil, and then re-entered the top ten in the world. The value of companies is currently ranked 10th.

Not only this...

Tencent's market value is about $462 billion, higher than $Exxon Mobil(XOM)$ ExxonMobil's $439 billion, but it is still not half of its peak. Tencent's return to the top ten in the world also highlights the blow to the U.S. stock market in the past year, mainly due to the large-scale tightening of monetary policy by the Federal Reserve. And the Nasdaq index fell by about 18% from the record high a year ago, plus $Tesla Motors(TSLA)$ $Tesla. American companies such as US and Facebook's parent company Meta$Meta.US $Meta Platforms, Inc.(META)$ fell out of the top 10 in market capitalization, thus making Tencent's ranking high.

Strong financial standing

According to the latest Tencent financial report data, Tencent achieved operating income of 140.093 billion yuan in the third quarter of last year, narrowing to 2% year-on-year, net profit 32.254 billion yuan, an increase of 2% year-on-year, stabilizing after four consecutive quarters of decline. In the third quarter, WeChat and WeChat had a monthly activity of 1.309 billion yuan, an increase of 3.7% year-on-year; QQ mobile terminals had a monthly activity of 574 million, an increase of 0.1% year-on-year.

I think Tencent's stock price development in the future is bright, and it should be expected to be at the level of 500 yuan.

Why do I say that? There are the following reasons:

1) For the whole market, Tencent's market value has returned to the top 10 in the world, which is actually very normal. We have seen that in the recent period of time, the U.S. stock capital market has basically fallen on a very large scale. In such a serious decline of U.S. stocks, U.S. stocks Internet technology companies have been hit a lot. The fund will also choose Tencent's potential stocks.

2) For the current whole market, Tencent has a phenomenon of market value regression. In fact, not only Tencent's own performance is also the fluctuation of the whole environment. Under this and change, there is a very obvious trend, leading to a certain regression of Tencent's overall ranking.

3) The internal dynamic energy of the domestic economy continues to be repaired, and the spread between China and the United States is gradually convergent. Hong Kong stocks are expected to usher in the most favorable macro combination of "weak dollar index + RMB strength". Tencent will definitely benefit from this enterprise. And with the domestic customs clearance, the RMB has become stronger, which is definitely beneficial to Tencent's business development.

4) With the subside of the impact of the epidemic and the substantial recovery of China's growth, there will be a substantial increase in the functions and game business of the app. It is not impossible for Tencent to return to its pre-epidemic performance. Based on the above points, Tencent's future development is expected, and it is a matter of time before the stock price rises to 500 yuan.

I think I can pay attention to and buy when Tencent has been adjusted. I believe that the goal can be achieved before the results of the second quarter of this year.

$Semiconductor Bull 3X Shares(SOXL)$ 

@MillionaireTiger @Tiger_chat @TigerStars 

# Which stock do you pick for swing trading?

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  • I believe Tencent will see its valuation come back
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  • EvanHolt
    ·01-26
    To be honest, I'm worried about Tencent's profitability
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  • Yes it should return to 700 dollars by end of this year. Dont miss the boat :)
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  • tough market
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  • sigit s
    ·01-24
    ok thanks
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  • 钱神
    ·01-27

    Great ariticle, would you like to share it?

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  • I still worry about policy risks for Tencent
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  • Tencent's market cap is not that high. Isn't it?
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  • DonnaMay
    ·01-26
    I'm happy with Tencent's revenue growth
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  • AricLo
    ·01-24
    okay thanks for sharing
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  • sh99
    ·01-26
    sorry, good *
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  • sh99
    ·01-26
    god
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  • LTTan
    ·01-26
    👍
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  • Like pls
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  • CherryPang
    ·01-25
    Ohio
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  • Ok
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  • KY56
    ·01-25
    Nice.👍
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  • tseechu1
    ·01-25
    ok
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  • DuckBot
    ·01-25
    sui
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  • Bons
    ·01-25
    noted
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