Even With Sky‑High Gains, This Entertainment Powerhouse Could Still Jump 10%

Tencent’s Current Surge and a Potential Upswing

Tencent Holdings (TCHEY) has already rocketed 26.5% this year, yet analyst Rahul Nambiampurath predicts a 10‑20% rally in the near‑to‑midterm.

Why the optimism?

Gaming challenges looming, but Tencent’s shift to other revenue streams is proving pretty successful.
Ads and business services are showing resilient and adaptable growth.

Financial Proof Points

Robust cash flow
Consistent profit margins
Global expansion
Solid balance sheet

All these factors underscore why Rahul remains bullish on Tencent’s upside potential.

Tencent’s Bullish Financial Presence

Tencent Q1 2024 – A Money‑Making Marvel

Rahul’s take on Tencent’s latest quarter is crystal clear: the company is humming with growth, and the price is poised to rally. Below is the crisp snapshot of why he’s feeling the bullish vibes.

Financial Highlights (RMB & USD)

Total Revenue: RMB 159.5 billion (≈ $22.08 billion) – up 6% YoY
Gross Profit: RMB 72.6 billion (≈ $10.04 billion) – up 23% YoY
Operating Profit: RMB 32.6 billion (≈ $4.52 billion) – up 30% YoY
Adjusted Net Profit: RMB 50.27 billion (≈ $6.96 billion) – up 54% YoY
Advertising Revenue: RMB 26.5 billion (≈ $3.66 billion) – up 26% YoY

What’s Sparkling?

1. Gross margin: Click‑ups by 7% year‑over‑year – a sweet sign that costs are staying in check.

2. International gaming: +3% YoY – the overseas markets are still thriving.

3. Advertising: A whopping 26% jump, thanks to upgrades in ad tech and the kickoff of WeChat Video Accounts. Business services were also on a growth wave.

The One Not-So‑Shiny Corner

Domestic gaming revenue dipped 2% in 2024 – a minor hiccup in an otherwise solid quarter. Rahul pointed out that the dip is slight and won’t weigh too heavy on the long term.

On the Horizon

“Tencent’s own AI model is slated to roll out later this year,” Rahul shares. “It’s still in the testing stage but could give both the gaming and advertising arms a real boost.”

All in all, the numbers paint a picture of a company that’s not only staying strong but is also primed for a new upswing. Rahul’s optimism is well‑grounded, and the market might just take a cue.

What is the daily chart indicating?

Rahul’s Deep‑Dive Adventure

The financial fundamentals for Tencent look pretty solid—numbers that could lift a skyscraper. Yet our buddy Rahul wasn’t satisfied with a quick glance; he wanted the “inside scoop.” So he pulled out his charts, zoomed in, and dove headfirst into TCHEY’s daily run on the Hong Kong exchange.

Spruce up the data: Rahul likes to see the sweet spot between peaks and troughs.
Crack the day‑to‑day story: A single day can change a whole market narrative.
Beat the keyboard: Forget passive scrolling—he’s actively chasing trends.

Think of it like a detective trying to solve a mystery: the smartphone firm’s ledger is one clue, but the daily chart reveals the hidden moves. That’s the kind of thoroughness Rahul brings to every chart.

How Tencent’s Stock is Skipping to New Heights

Picture Tencent’s share price as a tight‑skinned athlete leaping inside a symmetrical triangle. The price is hugging the upper trendline like a tightrope walker, but it’s refusing to step off the edge. Even though the stock has been on a hot streak, the RSI hasn’t slipped into the doldrums – it’s still got that electric spark. That’s why Rahul is feeling all the bullish vibes.

Why breaking that upper trendline matters

The next big bump could lift the price close to 400 HKD (about $51.28).
From there, the camel’s next destination is 411.8 HKD – roughly $52.79.
Those ceilings line up nicely with the $61.19 target set by Jefferies analyst Thomas Chong.

Timing & Signal: The TradingView Tip

Keep an eye on the Trendline Break. Once it tears through, the next move could feel like someone giving a pep talk to a silent room – a sudden burst of confidence and price surge.