TECH

Tencent stumbles in stock market and falls devaluation record

Tencent is one of the largest technology companies in the world, responsible for social networks and e-commerce stores in China, only to be surpassed by Alibaba in Asia. In its expansion by the West it acquired publishers of video games responsible for some of the biggest successes of the present time. Yes, Epic Games, responsible for Fortnite is part of the Tencent family, but not only: the Riot Games of League of Legends, the Supercell of Clash Royale have capitals of the Chinese, as well as Activision Blizzard.There is now news that the Chinese giant has depreciated 143 billion euros, about 25% from January's figures, making it the company with the largest worldwide drop in the stock market. Tencent follows the negative trend of stock market devaluation, recalling that Facebook also had a tragic fall of 136 billion dollars last week.

 
The company's mobile gaming business has seen declines, with its shares down 9.8 percent in July, and 3.3 percent on the last day of the month, the largest monthly decline since 2014, Bloomberg reports. Economic experts report that the explosion of profit growth in recent years has reached a breaking point where it is difficult to keep a similar record in the future due to the saturation of some segments and the emergence of increased competition.The second quarter saw the company's annual profit growth slow to 5.1%, the weakest since 2012, Bloomberg said, prompting at least 11 investment banks to push back the target for Tencent's east share price month, including Morgan Stanley and Credit Suisse. Still, analysts remain optimistic for the company's future, continuing to recommend buying Tencent shares, forecasting 45% gains next year. The company will announce the results of the second quarter of the year on August 15.



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