Tencent Holdings stock, which lists on the OTC market in the U.S., is one of the largest companies in the world with a market cap of over $424 billion. Tencent Holdings is the world’s largest video-game publisher by revenue.
Tencent Holdings is an investment holding company principally involved in the provision of value-added services (VAS) and online advertising services. The Company operates through three main divisions: VAS, Online Advertising, and Online Payments and Cloud Services.
The VAS segment is mainly involved in provision of online/mobile games, community value-added services and applications across various Internet and mobile platforms. The Online Advertising segment is mainly engaged in display based and performance based advertisements. The Online Payments segment is mainly involved in provision of payment related services, cloud services and other services. You can find out more about this company on their website here.
Wechat, Tencent’s messaging app, has more than 938 million active users which is nearly three times the entire population of the U.S.!
In China, the leaders in online payments are Alibaba with a 54% market share for its Alipay service and a fast-closing Tencent Holdings and its WeChat Pay with a 40% market share. Last year Wechat Pay processed $1.2 trillion in transactions.
Tencent Holdings Stock Gets Wells Fargo Analyst Coverage
Just a couple of weeks ago, Wells Fargo initiated coverage of Tencent Holdings stock with an Outperform rating. That’s pretty rare to see a major analyst firm like Wells Fargo giving an Outperform rating on an OTC stock.
Wells Fargo isn’t alone, Barclays PLC has an Overweight rating on the stock and they boosted their price target to $49 back on August 18, 2017.
Tencent Holdings Stock
The stock has been in a strong uptrend for the last year and I don’t see any signs yet on the chart that the uptrend is going to change. The stock has been consolidating and volatility has been reduced. I would like to see a break below the 20 day moving average (red line) for an entry with a stop placed just below the 50 day moving average.
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