If you’re looking to make money online, you may want to consider investing in Tencent stock. This technology and entertainment conglomerate is headquartered in Shenzhen, China. It’s one of the highest grossing multimedia companies in the world. This stock offers investors the opportunity to make money from a fast-growing company. However, before investing in this company, you should learn more about its history and current financial situation.
The company has been plagued by macroeconomic factors and ongoing regulatory pressure in China, and Tencent stock has suffered as a result. In early 2017, Tencent stock traded at a 34% discount to its peak. While the company continues to grow its revenue and earnings, it has lost its Midas touch. In the fourth quarter of 2021, revenue growth slowed to just 8% year-over-year, while profit fell 25% on a non-IFRS basis. The stock’s performance was further impacted by a weak performance in the first quarter of 2022.
Tencent’s stock has fallen by more than 40% in the past six months, and negative headlines may have caused investors to think twice about buying the stock. However, despite the stock’s recent drop, investors shouldn’t overlook this tech giant. It’s worth remembering that Tencent has been subjected to anti-trust scrutiny from China’s State Administration for Market Regulation. In April, Tencent was fined $2.8 billion for anti-competitive practices.