Investing In China’s Largest Stock 📈 Tencent

Introduction In the West we’ve got Facebook, Amazon, PayPal and about 10 major gaming companies to satisfy our consumer needs, in China they have Tencent. Tencent is the major player in Chinese social media, they’re engaged in e-commerce, they have their own payment platforms and they’re the largest computer game publisher in the world! They’re a company that’s seems to be in almost every sector in the Chinese economy.

Basics of Tencent China was never known as the largest internet or technology savy nation until companies like Tencent started to have their way. I mean Jack Ma, Alibaba’s founder has talked about searching the word china on the internet and no results popping up.

In the 1990’s the internet was close to non-existent in China. But then you had companies like Tencent come along. And they started connecting people through the internet, growing there business. They grew through internet cafés, gaming and there chat platform QQ.

From humble beginnings Tencent are now the largest company in Asia, with a market cap of over $500 billion. Now when you got a company this large they can be hard to understand, so let’s break down the company Tencent.

And I’m going to break this down because as investors it is a paramount that we understand the company that we invest in. You don’t want to be one of those investors that mindlessly invests in a company.

They’re what’s known as the losers of the market. Now Tencent is as an investing holding conglomerate, this means they own and invest in a bunch of other companies. Let’s take a look at the companies that Tencent own and the different sectors that they are engaged in.

So first they have their social network platforms. Wechat and QQ. WeChat is a Chinese multi-purpose app, used for social messaging, social media and payment purposes. It’s like a one App does everything kind of deal.

And it’s recently surpassed the 1 billion monthly user amount. Flippin massive. Then you’ve got QQ which is just used for social messaging. And it’s a little bit less formal then WeChat, because you don’t need a phone number to be a user of it, which attracts younger users.

Total active monthly users is 783 million. And both of these are owned by Tencent. So imagine as a company if you had this many people using your platform, close to everyone in China. Do you know the type of control and money that this brings in.

It’s pretty powerful, but obviously something that they need to be careful with. I mean the closest thing I can compare it to is Facebook that dominates the West. Now Tencent doesn’t stop there. If you’re a shareholder in this company you’re also going to be an owner in it’s digital payment platform.

Think about you it, got more than a billion people using your apps and it’s also what they use to pay money from. The closest thing I can compare this to from the west, is Paypal. I don’t know if you guys are aware of this phenomena but it seems that almost everyone under the age of 30 is into gaming.

And I don’t mean the hide and go seek, or monopoly type games. I’m talking internet games like fortnite and playstation games like Fifa. I’m 22 and close to every one of my friends is playing some game or another.

And tencent is the biggest computer game publisher in the world. I mean Tencent owns the game league of legends. And more people watched the league of legends world final then the NBA finals. Times are changing.

So as gaming get’s bigger and is monetized more efficiently, Tencent will be the company the brings in a lot of that money. And it’s crazy Tencent are so big and innovative that they have now moved into a bunch more sectors.

They invested money into a firm Vipshop which engages in e-commerce. And they’re also driving the development of artificial intelligence in China. So if you own tencent stock, you’re an owner in Chinese social media, payments, gaming, e-ecommere, artificial intelligence and much much more.

Think of anything innovative in China and Tencent are probably engaged in it. Let’s take a quick look at the financials of this company. Tencent is selling for a price of $53.95. Earnings per share is $1.

34. PE ratio 40. And it’s got that massive market cap of 509 billion. Dividend close to nothing at 0.22%. Now let’s finish this thing off with the postitives and negatives of owning Tencent stock. Positives about Tencent Stock - As talked about, as a stockholder you’re going to be exposed to a bunch of innovative and growing technologies in China.

As these area’s continues to grow Tencent will continue to profit. - Secondly over 1 billion people use your social media app on a monthly basis. When you got so many people using your platform it gives you a lot of opportunity to make money.

- And lastly the company has a massive moat. It’s close to impossible for any company to come up and compete with Tencent in the area’s its good at. This means a long-lasting, fruitful business. Negatives about Tencent Stock - Well you’re paying a fairly hefty price.

It’s got a p/e ratio of 40, a price to sales ratio of 12 and a p/bv of 11.5. So that’s some pretty high multiples, which means our stock needs to grow well in order to justify that price. - And secondly you an owner of a stock in a different country (unless your Chinese obviously).

And this means the stock is harder to understand because China has a different culture and a different way of doing things. You also have to deal with the Chinese government which means your malleable to government policy.

So that’s the majority of what you need to know before investing in the biggest Asian stock in the world. What do you think is it a good investing option. You know hearing different opinions on the stock helps all of us investors get a fuller picture.

So rip up the stock in the comments or build it up, I don’t care as long as they’re honest comments then I want to hear them. And finally if you want more videos on investing and different stocks then this is the channel to be subscribed to.

The button is just there. in the West we've got Facebook Amazon PayPal and about 10 major gaming companies to satisfy our consumer needs in China they have $0.10 Tinson is the major player in Chinese social media they're engaged in e-commerce they have their own payment platforms and they're the largest computer game publisher in the world they're a company that seems to be an almost every sector in the Chinese economy China was never known as the largest internet or technology savvy nation and so companies like Tinson started to have their way I mean Jack Ma Ali Baba's founder has talked about searching the word China on the internet and no results popping up in the 1990s the internet was close to non-existent in China but then you had companies like teen scene start to come along and they started connecting people through the internet growing their business they grew through antenna cafes Gaming Envy chat platform @qq from humble beginnings tents in another largest company in Asia with a market cap of over 500 billion now when you've got a company of this large they can be hard to understand so let's break down the company Tencent and I'm gonna break this down because as investors it is paramount that we understand the company that we invest then you don't want to be one of those investors that mindlessly invest in a company they're what's known as the losers of the market now 10 seen as an investing holding conglomerate this means they own and invest in a bunch of other companies let's take a look at the companies they tintin own and the different sectors that they are engaged in so first they have these social network platforms WeChat and QQ WeChat is a Chinese multi-purpose app useful social messaging social media and payment purposes it's like a one app it does everything kind of deal and it's recently surpassed the 1 billion monthly users mount flip a mess up then you've got QQ which is useful just social messaging and it's a little bit less formal than WeChat because you don't need a phone number to be a user of it which attracts younger users total active monthly users a 783 million and both of these are owned by $0.

10 so imagine as a company if you have this many people using your platform close to Iran and China do you know the type of control and money that this brings in it's pretty powerful but obviously something that they need to be careful with I mean the closest thing I can compare it to is Facebook that dominates the West now tensy doesn't stop there if you're a shareholder in this company you're also going to be an owner and ass digital payment platform think about it you've got more than 1 billion people using your apps and it's also what they use to pay money from the closest thing I can compare this to in the West is PayPal I don't know if you guys are aware of this phenomena but it seems that almost everyone under the age of 30 is into gaming and I don't mean their hide-and-go-seek or monopoly type games I'm talking internet games like fortnight and PlayStation games like fifa I'm 22 and close to every one of my friends has playing some game or another and Tinson is the biggest computer game publisher in the world I mean Tintin owns the game at League of Legends and more people watched the League of Legends World Final within the NBA Finals times are changing so as gaming gets bigger and is monetized more efficiently Tintin will be the company that brings in a lot of this money and it's crazy Tintin are so big and innovative that they now have moved into a bunch more sectors they invest the money into a firm a vep shop which engages an e-commerce and they're also driving the development of artificial intelligence in China so if you own 10 cent stock you're an owner in Chinese social media payments gaming ecommerce artificial intelligence and much much more think of anything innovative in China and 10 Cena probably engaged in it let's take a quick look at the financials of this company Tencent are selling for price of fifty three point nine five dollars earnings per share is a dollar thirty four p/e ratio 40 and it's got their massive market cap of 509 and billion dividends close to nothing at 0.

22% now let's finish this thing off with the positives and negatives of owning teens in stock positives about teens in stock as talked about as a stockholder you're gonna be exposed to a bunch of innovative and growing technologies in China as these areas continue to grow tinting will continue to profit secondly over 1 billion people use this social media app on a monthly basis when you've got so many people using your platform it gives you a lot of opportunity to make money and lastly the company has a massive moat it's close to impossible for any company to come up and compete with $0.

10 and the areas that it's good at this means a long lasting fruitful business negatives about 10 cents stock well you're paying a fairly hefty price it's got a p/e ratio of 40 a price to sales ratio of 12 and a price to book value of 11.

5 so there's some pretty high multiples which means a stock needs to grow well in order to justify that price and secondly you're an owner of a stock in a different country unless you're Chinese obviously and this means the stock is harder to understand because China has a different culture and a different way of doing things you also have to deal with the Chinese government which means you're malleable to government policy so that's the majority of what you need to know before investing and the biggest Asian stock in the world what do you think is it a good investing option you know hearing different people's opinions on the stock helps all of us and visas get a fuller picture so rip up the stock in the comments or build it up I don't care as long as they're honest comments then I want to hear them and finally if you want more videos on investing in different stocks then this is the channel to be subscribed to the button is just there


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