WHY I BUY TENCENT STOCK(TCEHY)|WHAT IS TENCENT?HOW MUCH HAS IT INVESTED GLOBALLY? YOU'LL BE RICH

My name is AN AND Today I am going to discuss reasons why I am adding shares of TenCent Holdings to my portfolio.

1. Strong growth in China and global market
2. Diverse Investment portfolio

So, what makes Tencent so special?Here in the U.S, we often hear FANG stocks of Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOG). We all know what these companies are, and what they do. In China, Tencent Holdings, in a way, is all FANG combined under one company. Under which WeChat app owned by TenCent alone has more than 1 billion active users monthly. Tencent music app QQ is pretty much a Chinese Spotify, but its QQ music app is actually profitable, and has over 800 million monthly active users. TenCent QQ also has investment coming from Spotify, Sony, and Warner music.Tencent has its own music division - Tencent Music Entertainment (TME). In 2017, TME and Spotify made a deal to swap shares giving Tencent 7.5% stake in the streaming giant Spotify. The two companies will invest in each other's music business.

TenCent is also the beast of online gaming in China. In fact, this is where the bulk of its revenue comes from.Tencent is the world’s biggest gaming company if concentrating only on online gaming, and exclude the game console-makers such as Sony, Microsoft, and Nintendo.
Tencent owns a substantial portion of Epic Games, a North Carolina-based company behind "Fortnite", the Epic Games Store, and the software suite called Unreal Engine that powers many game titles. It also owns 84% of Supercell, a Finnish mobile gaming powerhouse behind "Clash of Clans," "Clash Royale," and "Brawl Stars."
Tencent has recently completed a deal giving it a 10% stake in Universal Music. The record label includes major artists such as Lady Gaga, Taylor Swift, Drake and Kendrick Lamar .Tencent Pictures, the film and production arm of Tencent, has been involved in a large number of Hollywood movies, including Kong: Skull Island, Terminator: Dark Fate, Wonder Woman.

While Amazon, Facebook, and PayPal were on all over the news in June this year for taking stakes in Gojek, an Indonesian rail-hailing service; TenCent had already invested in Gojek back in 2017.
This year, many investors have enjoyed the performance of Sea Limited’s stock (ticker: SE) appreciating 880% since March, but might not know it and Tencent had formed a long-term strategic partnership back in 2018.

And, here is a kicker: Tencent owns 5% of the US electric car firm Tesla, and 15% takes in Chinese electric car maker Nio.TenCent holdings has invested in over 800 companies all over the world, of which over 160 are unicorns that valued at more than $1 billion.

With the number of unicorns and other ventures under its belt, TenCent has not stopped. Just recently the company announced to pledge $70 billion us dollars over the next five years in technology infrastructure including cloud computing, artificial intelligence, and cybersecurity. The announcement comes after call by Chinese government last month for a tech-driven structural upgrade and a surge in demand for business software and cloud services.

If you buy a share of TenCent, you are investing in not just Tencent Holdings Limited but through its subsidiaries which include social networking, music, web portals, e-commerce, mobile games, Internet services, payment systems, entertainment, artificial intelligence, and technology solutions.

Btw, Tencent is not listed in the major US exchanges. It’s being traded over the counter. It means that the shares are unlisted and purchases need to be routed through market makers who keep inventory of the shares. You will need to have an account with a full-service or discount securities broker in order to buy TenCent shares.
There is perceived risk of buying stocks over the counter because it is the exchange for penny stocks and those are not qualified to be listed on the major exchanges in the U.S.
But that doesn’t make investing in Tencent risky. It is a proven company with solid track records, and TenCent being traded over the counter is the least of my concerns.
You may have heard of Nintendo, the infamous game maker; its stock is being traded over the counter, too. Did that make you feel better?

In summary, while WeChat is the most well-known in its portfolio, Tencent has quietly and aggressively expanded into many fast-growing tech and non-tech areas including artificial intelligence, cloud computing, online entertainment. Its solid revenue growth rate, strong financial resources, and diverse portfolio will position Tencent for a new high.
Even though Tencent's shares are not cheap, the price is still below fair value, and there is relatively large upside potential. To me, it's a buy.


##### Disclaimer:
Content is for News & Entertainment purposes only. I am not a legal, financial or accounting advisor. If you need advice, please contact a qualified CPA, attorney, or the appropriate professional for the subject you would like to help with.