Stock in Focus: Tencent

Hong Kong-listed tech stock Tencent has lost billions in market value this year, but Morningstar analysts believe its shares are significantly undervalued

Morningstar Analysts 17 August, 2018 | 10:16AM
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Tencent

Shares in Hong Kong-listed internet messaging and gaming giant Tencent (00700) slid this week after second quarter profits missed forecasts. The Chinese company, which has nearly two billion users, has lost over $170 billion in market value since the January peak in its shares as Beijing hikes regulatory controls on online games, Tencent's key market.

Tencent is one of the so-called BATs technology stocks, which includes Baidu (BIDU), Alibaba (BABA), which are expected to overtake the US FAANGS in the coming decades. Tencent was the first internet company to launch in Hong Kong in 2004 and became part of the MSCI China Index in 2008. Since then, Tencent's market value has risen from $3 billion to $525 billion.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alibaba Group Holding Ltd ADR145.55 USD0.32Rating
Baidu Inc ADR154.52 USD-1.31Rating
Tencent Holdings Ltd464.60 HKD0.96Rating

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