Big Tencent rally faces key earnings test

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Tencent’s successful foray into short videos and a softening regulatory backdrop have fueled a $160 billion (R2.97 trillion) rally since October, the next leg of which will hinge on a crucial earnings release this week.

Tencent Holdings Ltd.’s successful foray into short videos and a softening regulatory backdrop have fueled a $160 billion rally since October, the next leg of which will hinge on a crucial earnings release this week.

Much of Tencent’s rally was driven by anticipation of future sales streams and a belief that Beijing will keep its promises of supporting the private sector. “A key area to watch will be contribution from video accounts, which could help surprise on the upside.”

 

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