Tencent on Wednesday reported results for the three months through to the end of June that beat analyst expectations in one of the fastest revenue-growing quarters in two years.
Gaming boosted overall revenue while Tencent saw some weakness in its advertising business.
Revenue: 114.88 billion yuan ($16.53 billion) vs 112.72 billion yuan expected. That’s a 29% year-on-year rise, the fastest growth since the second quarter of 2018.
Profit attributable to equity holders of the company: 33.1 billion yuan vs 27.56 billion yuan expected. That’s a 37% year-on-year rise.
Source: CNBC
Mirroring the US tech stocks, Tencent has posted revenue that has beaten analyst's expectations for their Q2 results and particularly important during the pandemic period. Forward looking, it is expected that it will likely continue to perform well in its gaming area but one key concern to take note is the US China tension as the US government may continue to target Chinese companies and Tencent is likely going to be one of those companies.
Looking at the price performance of Tencent today after its earning announcement, it opened higher at 528 but it seems that it has retracted during lunch hour. If positive news does not boost the price, bad news would likely push it even lower and we will need to continue to monitor for the next few days/weeks.
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