Crypto EcoBlog
Tencent stock price is moving higher and the company has good chances to be ranked as the biggest Asian company.Tencent Holdings Ltd (HKG: 0700) stock has performed beyond investor expectations with the stock soaring to 500 Hong Kong dollars on Wednesday. This broke the 498.60 HKD record set the day before. The price surge of Tencent stock has made it the focus of debate as analysts opine that it is in direct contention with Alibaba Group Holding Ltd (HKG: 9988), another Asian giant in the race for the biggest company in the continent.Neil Camping, who is the head of technology of Mirabaud Securities said that investors are upbeat at the prospects of Tencent’s advertisement business. He said that the company’s business has performed stronger than expected and has not shown any sign of
Topics:
<title> considers the following as important:
This could be interesting, too:
Chayanika Deka writes Metaplanet Makes Largest BTC Purchase to Date Despite Bitcoin Price Correction
Wayne Jones writes Trump Names Bo Hines Executive Director of Presidential Digital Asset Advisory Committee
Emily John writes Interpol Targets Hex Founder Richard Schueler with Red Notice
Emily John writes Brian Brooks Joins MicroStrategy Board After Binance.US Exit
Tencent stock price is moving higher and the company has good chances to be ranked as the biggest Asian company.
Tencent Holdings Ltd (HKG: 0700) stock has performed beyond investor expectations with the stock soaring to 500 Hong Kong dollars on Wednesday. This broke the 498.60 HKD record set the day before. The price surge of Tencent stock has made it the focus of debate as analysts opine that it is in direct contention with Alibaba Group Holding Ltd (HKG: 9988), another Asian giant in the race for the biggest company in the continent.
Neil Camping, who is the head of technology of Mirabaud Securities said that investors are upbeat at the prospects of Tencent’s advertisement business. He said that the company’s business has performed stronger than expected and has not shown any sign of weakening.
“Recent meetings have given comfort to investors that Tencent’s advertising business is performing stronger than expected,” he said.
Wednesday gains that excited market watchers were not sustained as Tencent shares are 1.33% lower than its ATH, on the same day, Alibaba stocks made gains of 0.64%.
The market capitalization of the two companies stood at 4.82 trillion Hong Kong dollar ($621 billion) according to figures obtained from CNBC.
Stock to Watch
Analysts think that Tencent is the stock to watch. Bernstein market experts believe that it could rise to 570 Hong Kong dollar representing a 13% rise from Wednesday’s high. Nomura analysts predict 5% growth to 531 HKD.
When ByteDance, the Chinese unicorn and owner of TikTok was launched, the expectation was that it would take a large chunk of the Tencent market. That doesn’t seem to be happening as Tencent has continued to have an impressive performance to date.
Tencent and Alibaba as Two Asian Digital Behemoths
Campling said that what’s happening between Tencent and Alibaba is an indication that two behemoths would emerge in Asia’s digital space just like in the West which has been dominated by Google LLC (NASDAQ: GOOG) (NASDAQ: GOOGL) and Facebook Inc (NASDAQ: FB).
A Bernstein analyst said that the prospects of Tencent’s digital advertising business has not been fully factored in yet. He said that the advertising and gaming businesses have high optimism which would contribute to the company’s growth. He pointed out the ByteDance, the main competitor’s growth has already slowed:
“We believe Tencent has reached a tipping point in advertising as its technology improved while ByteDance’s growth slows down, allowing Tencent to take further market share going forward.”
Growing Ad Revenue
Tencent’s ad revenue is up 29% this year. This is 18% up from last year. In 3 years, the company has seen 24% ad revenue growth and increased market share. The company’s success is linked to the ad preference of WeChat, its popular messaging app.
The company is working on the acceleration of its super app platform WeChat. A plan for e-commerce support would make it a one-stop-shop for its customers.
Chuks is a blockchain enthusiast and finance researcher that has covered the crypto sphere for several years. He believes that the evolving technology would change how we do business.