Tencent's Growth Accelerates, but Challenges Loom on the Horizon
Tencent (OTC: TCEHY) is a divisive stock. The bulls argue that the Chinese tech giant's well-diversified portfolio of games, social media platforms, cloud services, and more will keep growing even as the Chinese economy slows down. The bears believe that Tencent spreads itself across too many markets, and that that lack of focus leaves it exposed to disruptive challengers like ByteDance, which is expanding its family of apps into Tencent's core markets.
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Tencent's latest earnings report, which featured 21% annual sales growth and a 19% increase in adjusted net profits (which excludes investment-related gains), failed to rally the bulls, and its stock tumbled amid a broader market sell-off. Let's take a closer look at the key figures and see if Tencent can finally shake off the bears.
Source Fool.com
