Tencent Holdings Ltd has recently seen a spike within its share price gaining over 27% since an October low. Analysts at Ryland Sandford Consultants have said that it equates to around $108 billion U.S. Dollars adding to its total market capitalization. The company’s share price reached over HK$400 Hong Kong Dollars on Monday, which was the first time since 2018.
Tencent has become one of Asia’s most prominent investment companies, with over 50 analysts who are tracked by Bloomberg’s online platform, it showed that they were all bullish without a single short recommendation.
“We see a significant rally in Tencent due to its revised earnings outlook, which are showing some influential key numbers, with its existing businesses outperforming and new businesses hitting the ground running,” commented David Williamson, Director of Institutional Trading at Ryland Sandford Consultants.
Ryland Sandford Consultants had noted that the company’s revenue from its PUBG mobile was the highest recorded worldwide, additionally it had most downloads globally in 2019. The company’s recent hit title ‘Call of Duty’ broke into the top ten for 2019.
“Tencent Holdings Ltd rallied over 1.6% on Tuesday with block trades totalling over one million shares. Most analysts view this as shareholders profit-taking; however, shares remain overbought toward levels not seen since 2017,” added Mr. Tony Wallace, Director of Private Clients at Ryland Sandford Consultants.
Tencent Holdings Ltd remains bullish to investors with a series of further new initiatives such as a new way to monetize WeChat, the company’s most popular social networking application.
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At Ryland Sandford Consultants, we safeguard the future for individuals, families and entrepreneurs by offering well-researched, intelligent investment and financial planning solutions in both advanced and emerging markets.
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