3 Red Flags for Tencent's Future
Tencent (OTC: TCEHY) posted its second-quarter earnings report on Aug. 17. The Chinese tech giant's revenue dipped 3% year over year to 134 billion yuan ($20 billion), which missed analysts' expectations by 570 million yuan and was its first revenue decline since its IPO in 2004.
Its net profit fell 56% to 18.6 billion yuan ($2.8 billion), which missed analysts' estimates by 6.7 billion yuan. On an adjusted basis, which excludes its investments and other one-time items, its net profit declined 17% to 28.1 billion yuan ($4.2 billion). Those headline numbers were weak, but a closer look reveals three other bright red flags for its future.
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