Tencent Holdingsthe Chinese video game and internet company, already it appreciated 28% so far this year and added more than USD 91 billion in value, which boosted the entire stock market in the country.
While the improving regulatory and business climate in the company’s key markets contributed to the upward trend, a big extra driver was the launch of its new title Dungeon & Fighter Mobile.
For these reasons, Tencent’s stock target prices rose to the highest level in two yearswhile earnings estimates grew more than 14% since the beginning of the year to an all-time high.
At the same time, options traders turned bullishwhich was reflected in the put-to-call ratio, which fell from a recent record after the release of the video game at the end of May, which surpassed USD 270 million in 30 days.
“Given current data, we believe it is reasonable to conclude that Dungeon & Fighter Mobile will be the largest new game launch in China in 2024 and Tencent’s most commercially successful new game in the last five years.”Goldman Sachs analysts wrote.
At the moment, Tencent is among the best performing companies in the global gaming sector in 2024, and its Hong Kong-listed shares outpaced gains from peers such as NetEase and Nintendo. Likewise, it managed to once again become the second largest company in Asiawith a market capitalization of USD 446,000 million.
“Capital inflows will go to Tencent first”he commented Vey-Sern Ling, CEO of Union Bancaire Privee. According to the specialist, the stock is rising with a “more positive outlook as its gaming segment returns to growth and its advertising business is gaining market share”.
