Tencent share price hits all time high
Chinese internet giant and mobile video game king Tencent saw its share price hit an all time high on Monday. The company is a week away from releasing its second quarter earnings (August 16 – we’ll see you there), and a strong outlook for its flagship title, Honour of Kings, as well as strength in its advertising business, is fuelling investor sentiment.
Tencent’s share price is up an incredible 72% so far this year
SOURCE: Yahoo Finance
Tencent is the world’s largest video games company by revenue, and Honour of Kings – likely to be an important talking point in the industry when the company’s results hit next week – is flourishing despite state-media criticisms.
On the graph above, which details Tencent’s share price performance so far this year, there is a notable dip in early July. That came when The People’s Daily, an organ for the Chinese Communist Party, described Honour of Kings as a “poison” and a “drug” which was responsible for damaging teenagers’ health.
Despite this setback, the game has continued to perform incredibly well. It has over 200 million players, and brought in more than $150 million revenue in June alone, making it the world’s top grossing mobile game for the month. When you consider that it’s only really played in China (something that the company plans to change), that’s quite the achievement.
Other things to watch out for from Tencent next week are advances in its phenomenally popular WeChat messaging service, which underwent enhancements and saw the introduction of sponsored content in May.
Dominion holds Tencent in its Global Trends Ecommerce Fund.
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