The Rise and Fall of Tencent

In this video we go over the rise and fall of the Chinese technology giant Tencent. At their peak in 2021 their market cap reached within striking distance of $1 trillion. Since then their stock has lost more than 70% of its value and there are questions about the company's long-term prospects given the unpredictable nature of China's regulatory environment.

0:00 - 1:50 Intro
1:51 - 3:09 Policygenius
3:10 - 4:58 QQ messaging app
4:59 - 6:48 QQ games
6:49 - 7:43 Original Tencent games
7:44 - 9:28 WeChat
9:29 - 11:20 Acquisition spree
11:21 - 13:10 Regulatory crackdown
13:11 - 14:34 Financial performance
14:35 Future outlook



#Wallstreetmillennial #tencent #china

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Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
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[fqekdpi]

In 2009 tencent went into the rap/music industry and experienced 500% growth and became 50cent

[dguy-xkfc]

Sidenote: They did not buy Epic games. Tencent acquired a 40% stake in Epic for more than $300 million in 2013 in Epic Games. Founder and CEO Tim Sweeney maintains a majority ownership.

[hermanleung]

the exchange rate is kill the stock price too, coz hkd is linked to usd directly, so it appreciated a lot compare to chinese yuan, which is the primary income of tencent

[alimc]

You're telling me Tencent is underreported by the Media? Really?

[MrSiren]

Gaming, Social network, Ads is a mature business for Tencent. The person who buy Tencent supposed to know about this.
The rising star is FBS and VC segment which is a hidden gems inside Tencent, I suggest you guys to study Ant financial and Cloud then comeback to look and FBS again.
This is all hints i can give, i want Tencent to stay low so i have more time to acquire more ownership of this company

[MS-qlek]

They also give advantages to Chinese players vs other players. I'm playing a game right now that is owned by Tencent and there are alot of pay to win and Chinese players pay about 30% less then we do on almost all purchases giving them the advantage but there are ways we deal with this but it is illegal and some of us from the US abuse the shit out of it

[qwaszxerdfcvtyghvb]

the title was deceiving, i knew that there was something wrong with the title which talks about a (fall) but if your stock plummeted it doesn't mean you are dead ... this is only the stock market ... they still have 1.3 billion users to milk and they will find a way to do it.

[williamyt]

If they own LoL, not only will they not have any financial trouble, but comparing it to opium may not be an overstatement lol

[rightwingsafetysquad]

Interesting discussion. Regardless of whether the company is likely to recover or not, I still wouldn't invest in any Chinese company. You're not really buying equity in the company, because that would be illegal under Chinese law. You're buying a membership in an organization run by a Cayman company owned by Tencent/Nio/Alibaba/etc. In addition, China has shown that they will not allow any private company to get large enough to be a near peer player with the state. To make money on Chinese stocks, you'd have to discover the company very early and get out before it catches the ire of the state, which is almost impossible for Westerners.

[slyblood]

anybody that invests in chinese companies is just insane in my view.

[drawingbert]

Where's the "fall" part? Am I missing something here? Based on the title, I thought there was going to be an exposé or news about leader incompetence or a mishandling of funds. it only showed a market correction.

[mrgyani]

This is a very high demand stock among investors. Monish Pabrai is its biggest admirer.

[vanesslifeygo]

They saw the future back then. Now, who knows what they can see that we can't.

[TheManinBlack]

I think its extremely EARLY to call it the "fall of Tencent". Not even close

[jackb]

Should be titled “the rise and fall of Tencent stock (2022).

[jonathandjing]

You guys remember the luckin coffee scam ? Cooking financial statements. I just don’t see how people can put their money there

[ktktktktktktkt]

4:12 wasn't MSN used a lot by the younger generation though? I'm pretty sure I used it a ton when I was a kid.

[maxsterling]

I have options on Ali Baba expiring in 2024. I was going to buy Tencent

[minyaksayur]

The one that lost the most money with Tencent declines, is south Africa. naspers owns 31% of tencent, while ma huateng only owns 7%. 20% of naspers is owned by the south african government investment funds.

[wilfredteo]

Life insurance is the biggest scam ever. There will be 100 reasons why you wont get your money when shit hits the fan