Why Tencent's 4th-Qtr Profit Slumped the Most in a Decade

Why Tencent's 4th-Qtr Profit Slumped the Most in a Decade

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Business

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Hard

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Tencent is diversifying from gaming to sectors like video, cloud computing, and fintech due to regulatory challenges. Despite long-term benefits, this shift causes short-term margin pressure. Regulatory issues still affect game approvals, impacting revenue. Tencent is restructuring management to improve efficiency and focus on the industrial internet. They face competition from Alibaba and ByteDance, especially in cloud computing and user engagement. Tencent's WeChat is a key asset, but they must innovate to maintain user attention.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What impact do regulatory issues have on Tencent's advertising revenue?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways is Tencent trying to compete with Alibaba in the cloud computing space?

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