Will Tencent fly to the moon or return to earth tomorrow?

$Tencent Music(TME)$ stock price fell on NYSE market opening today despite its just-reported first-quarter revenue beating estimates as the Tencent-controlled, Spotify-like music streaming platform benefited from a growth in paying users, reversing a gain of almost 9% in premarket trading.

Will this be a precursor to its parent $TENCENT(00700)$  stock price reaction upon the Chinese tech giant’s announcement of its quarterly earnings tomorrow?

As macroeconomic headwinds continue to rear their ugly heads around the globe, while global economies struggle with sticky inflations, rising interest rates and escalating geopolitical tensions that have shown no signs of easing, Tencent’s vast business empire including its stakes in numerous startups is not spared either.

As a stark contrast to astrological growth in its online gaming platform at the onset of COVID-19 pandemic when populations around the world resorted to online gaming and other indoor entertainments amidst border closures and movement restrictions, re-opening of global economies are now posing challenges to Tencent’s major source of revenues with workers returning to offices and students returning to schools. Lifting of travel restrictions has seen hordes of people putting aside their gaming hardware amidst growing distractions from traveling and other outdoor activities. This is not helped by increasing regulatory governance over screen times by young children and teenagers.

Hopefully as the Chinese regulatory clampdown on its tech sector pauses and measures to renew growth gains traction, Tencent will be able to crank up all its growth engines and regain its past glory.

@TigerWire @MillionaireTiger @TigerStars @CaptainTiger @Daily_Discussion 

# 💰 Stocks to watch today?(30 Oct)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment9

  • Top
  • Latest
  • vippy
    ·2023-05-19
    TOP

    Total revenue of the company, at 7.0 billion yuan ($1.01 billion) in the quarter ended March 31, compared with analysts' estimates of 6.86 billion yuan

    Reply
    Report
  • frosti
    ·2023-05-19

    If you compare Spotify (Spot), which is still not making money, but has twice a market cap of TME. Sooner or later, people will realize TME is really a hidden gem.

    Reply
    Report
  • MorganHope
    ·2023-05-17

    $腾讯控股(00700)$ has a strong track record of growth and innovation, and it is well-positioned to benefit from the Chinese economy.

    Reply
    Report
  • Guy
    ·2023-05-17

    Despite the recent decline in its stock price, Tencent remains a strong company with a bright future.

    Reply
    Report
  • LeonaClemens
    ·2023-05-17

    The only way to know for sure what will happen to Tencent's stock price tomorrow is to wait and see.

    Reply
    Report
  • pixiezz
    ·2023-05-19

    TME earned 0.89 yuan per American depository share, compared with estimates of 0.79 yuan per ADS

    Reply
    Report
  • wigglyz
    ·2023-05-19

    If TME can stay above its 50-days moving average 7.59, it will take off towards 52 week high soon

    Reply
    Report
  • zinglee
    ·2023-05-19

    New 52 weeks high soon, then 12-13 by year end

    Reply
    Report
  • MoonJin
    ·2023-05-17
    hopefully
    Reply
    Report