Tencent (OTCMKTS:TCEHY) Shares Gap Down - Should You Sell?

Key Points

• Tencent shares gapped down about 4.9%, opening at $70.89 after a prior close of $73.96 and last trading at $70.55 on volume of roughly 627,000 shares.
• Analysts still show a consensus "Buy" rating with a consensus price target of $102 (Barclays reiterated an $102 target), based on one Strong Buy, two Buy and one Hold.
• Tencent remains a large-cap tech conglomerate with a market cap of $640.6 billion, a P/E of 21.65, and technicals showing a 50‑day MA at $73.18 and 200‑day MA at $78.02.

Tencent Holding Ltd. (OTCMKTS:TCEHY - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $73.96, but opened at $70.89. Tencent shares last traded at $70.55, with a volume of 627,109 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on TCEHY. Barclays restated an "overweight" rating and issued a $102.00 price target on shares of Tencent in a report on Friday, November 14th. Erste Group Bank cut Tencent from a "buy" rating to a "hold" rating in a research report on Wednesday, February 18th. Finally, Zacks Research raised Tencent from a "hold" rating to a "strong-buy" rating in a research report on Thursday, November 20th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $102.00.

Tencent Trading Down 4.9%

The business has a 50 day moving average of $73.18 and a two-hundred day moving average of $78.02. The firm has a market cap of $640.63 billion, a P/E ratio of 21.65 and a beta of 0.30. The company has a current ratio of 1.36, a quick ratio of 1.35 and a debt-to-equity ratio of 0.26.

Tencent Company Profile

Tencent Holdings Limited is a Chinese multinational technology conglomerate headquartered in Shenzhen, Guangdong. Founded in 1998, the company grew from early instant-messaging products into a diversified internet services group and is listed on the Hong Kong Stock Exchange. Tencent's businesses span consumer-facing applications, digital content, cloud services and financial technology, supported by a broad investment program in global technology and gaming companies.

At the consumer level Tencent operates major social and communication platforms such as QQ and WeChat (Weixin), which combine messaging, social networking, mobile payments and a wide range of mini-programs and services.

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