TENCENT

Analysis of Tencent share price

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Do you want to invest online in Tencent shares via CFDs or buy this security? In this case, we offer our help to this effect and to help you carry out an analysis of this title of the best quality. To effectively speculate on this value, you must be able to understand who is this company, who are its competitors and partners or what are the elements which will have a direct or indirect influence on its share price. It is precisely these elements and all the information you need that we will present to you in detail on this page.

Latest news

TENCENT MUSIC: earnings slightly below consensus

29/03/2021 - 13h38

The results posted by Tencent Music in the fourth quarter show some growth. But this growth is less marked than expected

Elements that can influence the price of this asset:

Analysis N°1

We will follow for example the diversification of Internet use in China in different areas of everyday life and which could add sources of income to Tencent.

Analysis N°2

Tencent being above all a technological and innovative company, we will closely follow its expansion strategy based on the implementation of new services and the filing of new patents.

Analysis N°3

We will also follow the way in which Tencent tends to diversify its activities by focusing more on activities with the highest sources of income such as value-added services.

Analysis N°4

Of course, it will be necessary to keep an eye on the very strong competition of this sector of activity on a global level but especially in China.

Analysis N°5

We will monitor very strict laws and government policies in China and abroad and their evolution over time, which can thus influence the group's business activities.

Analysis N°6

Finally, we will of course follow the publications of annual and quarterly results by Tencent as well as the communications of strategic plans for this company

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General presentation of Tencent

Now let's take a few moments to introduce you in more detail to Tencent and its various activities. This will allow you to understand what are the main sources of income for this group and thus anticipate the possibilities for growth.

The Tencent group is a Chinese investment company that mainly provides value-added or VAS services as well as online advertising services. This company carries out activities in several sectors which we invite you to discover now in more detail.

  • First, we find the value-added community services sector and applications on various Internet and mobile platforms. These activities represent around 53% of the group's turnover and relate in particular to the supply of online games.
  • Then come the activities related to Fintech and professional services which represent 26.9% of the turnover generated.
  • The online advertising sector, which is mainly engaged in display and performance-based advertising, generates 18.6% of Tencent's turnover.
  • Finally, the rest of the turnover comes from third-party activities such as payment services, cloud services and other services.

To date, the Tencent group employs 62885 people worldwide.

Analysis of Tencent share price
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The major competitors of Tencent

Let us now take a few moments to analyze the sector of activity in which the Tencent group operates and which, as we have just seen, concerns several segments. In this sense, Tencent faces several big competitors of which here is a quick presentation:

NetEase Inc: This is a Chinese internet company which is notably in charge of the operation of 163.com, a Chinese web portal. This company has also invested in a search engine and in the online gaming sector.

Baidu 

It is also one of the most important Chinese companies in the web sector. Its search engine is particularly popular in the country. Of course, Baidu generates most of its turnover through online advertising revenues.

Alibaba 

Another Chinese giant listed on the stock market whose main source of income comes from online activities including a public market for business-to-business exchanges, payment and retail platforms, a search engine and cloud services computing.

Renren

This Chinese company is a social network listed on the stock exchange and which we used to know under the name of Xiaonei.

Google 

On the international level, we must of course also count on competition from Google, which offers technological and online services worldwide and which is a subsidiary of the Alphabet group.

Microsoft

This other American giant is a multinational computer company listed on the stock market and which employs more than 148,000 people in more than 120 countries.

Sony 

Sony Corporation is another competitor to Tencent, particularly in the online gaming segment. It is a Japanese multinational.


The major partners of Tencent

After having reviewed the various competitors of Tencent, let's move on to an analysis of its partners with some examples of strategic alliances that this group has been able to set up in the past:

Carrefour

In 2019, the Carrefour group announced an investment project with Tencent and Yonghi in Carrefour China. This operation aims to combine the French group's know-how in the field of distribution with Tencent technology and Yonghi's expertise. At the end of this transaction, Carrefour nevertheless remains the largest shareholder in Carrefour China. This partnership also includes a strategic cooperation agreement between Carrefour and Tencent in China aimed at improving the online visibility of the French brand in China.

Burberry

Also in 2019, it was with the luxury giant Burberry that the Tencent group set up another strategic partnership. The British group indeed wishes to develop its retail sales in China thanks to this alliance which will give rise to a pioneering concept which combines social media and retail with the aim of creating online and offline spaces which bring customers to engage, share and buy.

Disney

Finally, still in 2019, it was with Disney and Lucasfilm that Tencent partnered in order to allow the Chinese public to be reached by the Star Wars franchise. It was through the Tencent China Literature subsidiary that this agreement was implemented. This subsidiary is indeed dedicated to digital books and online publishing. China Literature will distribute around forty novels from the saga translated into Chinese. The partnership also calls for Dinsey and China Literature to collaborate on the publication of the first online Star Wars novel written by a Chinese author.

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Frequently Asked Questions

How to analyze variations in the Tencent share price?

To make a good analysis of the Tencent share price, you should ideally combine two types of analysis. Of course, this is the technical analysis which uses the graphs and the various indicators, and the fundamental analysis with the study and interpretation of the elements and publications of the news likely to influence this title and investors who speculate on it.

Where can I find information about Tencent and its results?

Although the Tencent group is a Chinese group, it is quite easy to obtain clear and transparent information about its news, its financial results or its strategic forecasts. For that, you just have to go to the part of the site of this company reserved for the investors or to consult the card of this title at your broker.

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