Breaking Down Alibaba and Tencent Earnings

The transcript discusses Tencent's performance, focusing on its seasonal impact, games pipeline, and stock valuation based on growth and advertising potential. It highlights risks to EPS forecasts, revenue divergence with Alibaba, and Tencent's preference over Alibaba. The growth in Tencent's financial services and investment strategies is explored, along with market competition and growth in China. The transcript concludes with speculation on Alibaba's Ant Financial IPO and developments in the fintech industry.

What is one of the main reasons for the seasonal impact on Tencent's advertising revenue?

• Increased competition from Alibaba

• Regulatory changes in China

• Deeper seasonal impact from advertising

• Decline in gaming popularity

What is the target stock price for Tencent mentioned in the discussion?

• $370

• $470

• $670

• $570

What is a major risk to Tencent's earnings forecast according to the discussion?

• Increased competition from ByteDance

• Lack of new game releases

• Macro impact risk

• Decline in cloud services

Which company is preferred for future backing according to the discussion?

• Meituan

• Alibaba

• ByteDance

• Tencent

What is a significant part of Tencent's 'others' business?

• Cloud computing

• Social media

• Fintech

• E-commerce