The Most Disappointing Tech Stock of 2019
In general, 2019 has mostly been a good year for China stocks. After the index fell over the course of 2018 because of the U.S.-China trade war, the Chinese market recovered somewhat in 2019, as both the U.S. and China stimulated their domestic economies. And eventually, after several false starts, the U.S. and China finally agreed to a preliminary trade deal in principle last week, ending the year on what looks to be a high note. That sent the S&P 500 up 28.7%, U.S. technology stocks up an even greater 35.1%, and the Chinese technology stocks -- as represented by the internet-focused KWEB (NYSEMKT: KWEB) exchange-traded fund -- up a respectable 26.1%.
Yet Tencent Holdings (OTC: TCEHY), arguably the best technology stock in China, or even the world -- which I recommended as a holiday gift last year -- has lagged the market in 2019, up only 16.5%. This a surprising result, given the company's deep competitive advantages and exposure to several high-growth industries, such as video games, online advertising, digital payments, and cloud computing. After a large decline in 2018, I would've expected more out of Tencent's recovery.
Looking back, here's why this internet giant lagged the market in 2019, but why it still remains an excellent long-term pick.
Source Fool.com
