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Tencent Earnings Top Amid China Crackdown On Tech Giants

China internet giant Tencent Holdings (TCEHY) reported mixed second-quarter results early Wednesday as Beijing cracks down vs. web platforms and many other private-sector sectors. Tencent stock was quiet early Wednesday.




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The internet messaging, payments and gaming giant reported adjusted earnings of 3.504 renminbi (54 cents) a share on revenue of $21.4 billion. Analysts expected Tencent earnings of 52 cents a share on revenue of $21.5 billion. Tencent was roughly in line with some revenue estimates.

Amid Beijing crackdowns vs. internet giants and online gaming in particular, Tencent said that players under age 16 accounted for 2.6% of China gaming revenue. Players under 12 accounted for 0.3%.

Tencent stock, which trades over the counter in the U.S., was not yet active before the openon on the stock market today.

Fueled by its popular WeChat app, Tencent is China’s leader in online messaging and payment services. The company is also a leading provider of online gaming, and has a burgeoning business in cloud computing. Its competitors include Alibaba (BABA) and JD.com (JD).

China stocks, including Alibaba, JD.com (JD) and Tencent Holdings fell hard Tuesday after antitrust regulators issued new rules aimed at banning unfair competition. China stocks have been under heavy pressure, with valuations cut roughly in half this year due to an ongoing government crackdown high-tech China stocks.

Tencent stock hit a 52-week low on Tuesday, along with Alibaba.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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