Tencent’s shares moved like a roller coaster, but that reflects more the short-term sentiments of investors than changes in the company’s prospects, says Tencent watcher Matthew Brennan to Global Times.
Tencent’s shares were among the world’s best performers in 2017, when a 13-month winning streak led the stock to more than double from HK$179.7 in December 2016 to HK$471.2 in January 2018.
This year, however, the shares have tumbled about 35 percent, falling to $HK308.4 on Wednesday. Tencent shares are down 15.6 percent in the past two weeks alone in response to tightening regulation of China’s videogame market.
“Investors are being too short-termist,” Matthew Brennan, founder of Tencent-focused tech consultancy China Channel, told the Global Times on Wednesday.
“Tencent’s stock rose incredibly in 2017, then dropped rapidly in 2018, but its long-term strategy hasn’t changed that much. Tencent is focusing in mini-programs, and all major internet companies in China are following that lead,” said Brennan.
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