Tencent Holdings: Is This Technology Star Still A Buy In 2018?

Admittedly, the way we phrased the title of this article is telling. Tencent Holdings is a super star for 13 years in a row when it comes to its stock price. After so many years of continuous rises this stock looks tired, at least for the short into the medium term, not necessarily the long term. Let’s find out in this article whether Tencent Holdings, symbol SEHK 700 in Hong Kong, is still a buy. More generically, the conclusions from our analysis may apply to any stock, regardless of whether it trades, which is the reason why we dedicate an article on this Hong Kong stock.

Founded in November, 1998, Tencent is a leading provider of Internet value added services in China. Since its establishment, Tencent has maintained steady growth under its user-oriented operating strategies. On June 16, 2004, Tencent Holdings Limited TCEHY (SEHK 700) went public on the main board of the Hong Kong Stock Exchange.

Tencent has been extremely successful in enhancing the quality of human life through Internet services especially in Hong Kong and China. Presently, Tencent provides social platforms and digital content services under the “Connection” Strategy. Tencent’s leading Internet platforms in China – QQ (QQ Instant Messenger), Weixin/WeChat, QQ.com, QQ Games, Qzone, and Tenpay – have brought together China’s largest Internet community, to meet the various needs of Internet users including communication, information, entertainment, financial services and others. Due to the enormous market share, it is a formidable force that Facebook could not ignore if the latter can finally get access to China.

Tencent Holdings: stock to buy in 2018? At which price?

The monthly chart of the stock price of Tencent Holdings can be described in a nice trending uptrend channel since the inception of trading giving a staggering > 60,000% gain for those who bought it in 2004. The upper channel resistance appears very solid to prevent any attempt to break out.