Is Tencent Stock a Buy?
Tencent Holdings (OTC: TCEHY) is not as widely followed as some American tech companies, but it deserves to be on investors' radar. The Chinese tech giant is a leader in social media, cloud computing, gaming, fintech, and video streaming. Even after a pullback in the share price last year, the stock has returned more than 200% for investors over the last five years.
The long-term growth opportunities in these markets is substantial, but the share price has been underwater since the beginning of 2018. Momentum in the gaming business, which makes up nearly a third of Tencent's revenue, came to a screeching halt when regulatory authorities in China halted new game approvals. Additionally, the weak economic environment in China has pressured growth in media advertising, which Tencent relies on to monetize its video streaming service (Tencent Video).
Tencent offers plenty of growth for investors, but as we've seen over the last year, the dependency on China is a real risk. However, a lot of this risk is already priced in, which could present an ideal to time invest in one of the leading tech companies in China.
Source Fool.com
