Tencent stock fell more than 5% on Tuesday after a surge the previous day, which pushed its valuation to $949 billion for the first time, according to CNBC. The shares hit a high of 767.5 Hong Kong dollars on Monday, rising 11% at one point.
- Tencent’s Monday stock surge was propelled by bullish calls by two investment banks, with Citi raising the target price to 876 Hong Kong Dollars and UBS setting the target from 700-830 Hong Kong dollars.
- Investors took profit on Tuesday, driving Tencent shares lower by around 5.48% to 724.50 Hong Kong dollars at 2.45 p.m. local time.
- Investors now focus on Tencent’s 2020 results for the fourth quarter and full-year set to be released in March.
- Analysts expect revenue of about $20.36 billion or 131.83 billion Yuan for the December quarter, a 24.6% year over year rise, while net income is projected to grow almost 29% to 32.85 Yuan.
- Tencent’s revenue from smartphone games is expected to grow 46% year over year to 38 Yuan due to new title releases.
- The company is also growing other business areas such as advertising, cloud computing, and financial technology via its WeChat Pay mobile payment system.
- Tencent announced last week that its transactions on its WeChat Mini Programs rose more than 100% in 2020 from 800 billion Yuan in 2019.
Tencent stock is currently declining. HKG: 0700 is down 6.26%