As part of the new Hang Seng Tech Index, Tencent makes up 8.52% of the new Tech Index and Tencent Holdings operates through the following segments: Value-Added Services, FinTech and Business Services, Online Advertising, and Others. The Value-added Services segment involves online and mobile games, community value-added services, and applications across various Internet and mobile platforms. The FinTech and Business Services segment provides fintech and cloud services, which include commissions from payment, wealth management and other services. The Online Advertising segment represents display based and performance based advertisements. The Other segment consists of trademark licensing, software development services, software sales, and other services.
Looking at the daily chart, it looks like it is consolidating with the lower range at $516 and currently just above its 20MA. Looking a the weekly chart, although it has made its parabolic move up to the highs of $565, we are seeing some form of consolidation within the top range. If this continues to consolidate, it might see a higher price movement depending on the broader market trend especially when Nasdaq moves.
One thing to take note though is the tension between India and China even though Mainstream media has always been covering the tension between US and China. India is also a big market for some of the big C-Tech (i call it China Tech) firms like Alibaba, Tencent, Xiaomi and the border tensions has recently made the India Government take some drastic moves against the chinese companies. We will need to continue to monitor the situation to see how things unfold.
*I currently hold Tencent shares
Details of Tencent via AAStocks: http://www.aastocks.com/en/stocks/quote/detail-quote.aspx?symbol=00700
Tencent Daily
Tencent Weekly
Analyst target price (courtesy of Tiger Brokers application)
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