Is Tencent Stock a Buy?
Tencent's (OTC: TCEHY) stock recently tumbled after antitrust fears overshadowed its impressive fourth-quarter earnings. The Chinese tech giant's revenue rose 26% year over year to 133.7 billion yuan ($20.5 billion), beating estimates by 0.6 billion yuan.
Its net income surged 175% to 59.3 billion yuan ($9.1 billion), beating expectations by 26.4 billion yuan. However, over half of those profits came from one-time gains during the quarter. Excluding those gains, its adjusted net profit still increased 30% to 33.2 billion yuan ($5.1 billion).
Those headline numbers looked solid, but Tencent's stock dropped after a Bloomberg report claimed the Chinese government was looking to establish a joint venture with the country's top tech companies to oversee the personal data they collect from consumers.
Source Fool.com
