Shares of Chinese tech giant Tencent Holdings (NASDAQOTH:TCEHY) are down more than 13% as of this writing over the last month. In spite of the company's impressive momentum, several factors have converged to drive the stock down the last couple of months. Uncertainty abounds, but this looks like a great time to back up the truck.
What happened?In its just-reported quarter ending its 2017 fiscal year, Tencent reported revenue growth of 56% to $36.4 billion and profit increased 75% to $11.1 billion. That's a fantastic year, right?
Not so fast. Investors honed in on slowing profit margin increases during the last quarter of the year as the company invests heavily for the future. That doesn't sound bad, but after a year in which Tencent's stock more than doubled, a lot is riding on its upward revenue and profit trajectory continuing. With cash being taken out of the bottom line to pay for further expansion, a breather was in order.
Added to the mix was a global market sell-off that has plagued many stocks since February as well as fears of a trade war between the U.S. and China. Regulators in the Chinese government have also shown renewed zeal in their censorship of the internet as of late, a practice that many fear could put a damper on Tencent's growth.
Top 5 China Stocks To Own For 2019: Sina Corporation(SINA)
Advisors' Opinion:- [By Leo Sun]
During the same period, Tencent's share fell from 54.3% to 47.7%. Most of Toutiao's gains were made at Tencent's expense, since other apps from Baidu, Alibaba, and SINA (NASDAQ: SINA) didn't experience major year-over-year shifts.
- [By Garrett Baldwin]
And with just a few smart plays in today's classic stock picker's market, you can pull in triple-digit gains with just a small investment.
The Top Stock Market Stories for Wednesday The Walt Disney Company (NYSE: DIS) was off nearly 1% after the entertainment giant fell short of profit expectations. The firm reported a sharp rise in programming costs to complement a big uptick in technology investment. The company reported earnings per share of $1.87, a figure that was $0.08 short of the Wall Street consensus. ESPN, the company's largest network, reported a big jump in programming costs – tied heavily to broadcasting rights – and a decline in subscribers. The company still reported a 20% jump in studio revenue year over year. Oil prices were falling Wednesday over concerns about Chinese demand. The downturn comes as markets monitor the impact of renewed U.S. sanctions on Iran. The Trump administration enacted the first batch of sanctions Tuesday morning; however, these sanctions did not immediately impact the nation's ability to export oil. Should the sanctions affect crude supplies, it is possible that speculators could push prices higher due to supply concerns. Finally, let's take a look at the growing $10 billion legal cannabis market in North America. Not everyone needs to grow a plant to make money. There are hundreds of companies making money without growing marijuana. From what inside sources told Money Morning editor Jack Delaney, luxury cannabis products are going to be the next big thing. Let's show you how to tap into this niche trend in the years ahead, right here. Three Stocks to Watch Today: CVS, TSLA, SNAP CVS Health Corp. (NYSE: CVS) leads a busy day of earnings reports. The firm's stock added 1.3% after CVS reported an adjusted EPS of $1.69 and $46.7 billion in revenue. Wall Street expected the firm would report an EPS of $1.61 on top of $46.45 billion. The company announced it is taking on Amazon.com (Nasdaq: AMZN) with a st - [By Steve Symington]
Shares of SINA Corp. (NASDAQ:SINA) were down 10.2% as of 3:30 p.m. EDT Wednesday despite strong first-quarter 2018 results from the Chinese internet media company.
- [By Leo Sun]
SINA (NASDAQ:SINA), one of China's oldest internet companies, generates nearly 80% of its revenues from the social network Weibo (NASDAQ:WB). It spun off Weibo in 2014, but maintained a majority voting stake in the company. The rest of its revenue come from its network of portal sites and its fledgling fintech business.
- [By Leo Sun, Jamal Carnette, CFA, and Nicholas Rossolillo]
Leo Sun (SINA): Many Chinese tech stocks were crushed over the past year by decelerating growth forecasts and escalating trade tensions between the U.S. and China. However, that sell-off also reduced the valuations of some solid growth stocks to value-stock levels.
Top 5 China Stocks To Own For 2019: Baidu Inc.(BIDU)
Advisors' Opinion:- [By Leo Sun]
Two Chinese tech companies, Baidu (NASDAQ:BIDU) and YY (NASDAQ:YY), both recently spun off their streaming video units as IPOs. Baidu spun off iQiyi (NASDAQ:IQ), the largest online video platform in China, in late March. YY spun off its gameplay video streaming unit Huya (NYSE:HUYA) in mid-May.
- [By Rick Munarriz]
Shares of Baidu (NASDAQ:BIDU) were hitting all-time highs last week, but after they tumbled 15% over the past three trading days, it's easy to wonder if they will be revisiting Wednesday's high-water mark anytime soon. China's leading search engine has seen its stock come under pressure after its COO announced late last week that he would be stepping down.
- [By Leo Sun]
Shares of Baidu (NASDAQ:BIDU) tumbled 10% on May 18, after the company announced the upcoming departure of COO Qi Lu in July. Prior to joining Baidu in early 2017, Lu served as Microsoft's executive VP of its Applications and Services Group. As one of the industry's leading AI experts, Lu played a key role in Baidu's transition from an online search company to a cloud and AI services provider.
Top 5 China Stocks To Own For 2019: Top Image Systems Ltd.(TISA)
Advisors' Opinion:- [By Ethan Ryder]
Get a free copy of the Zacks research report on Top Image Systems (TISA)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
- [By Money Morning Staff Reports]
Before we get to our latest pick, here are last week's top-performing penny stocks:
Penny Stock Sector Current Share Price Last Week's Gain Melinta Therapeutics Inc. (NASDAQ: MLNT) Healthcare $1.74 104.01% Pernix Therapeutics Holdings Inc. (NASDAQ: PTX) Healthcare $0.83 84.40% Top Image Systems Ltd. (NASDAQ: TISA) Healthcare $0.82 59.85% Jason Industries Inc. (NASDAQ: JASN) Healthcare $2.21 58.99% Maxwell Technologies Inc. (NASDAQ: MXWL) Financial $4.66 51.79% Marathon Patent Group Inc. (NASDAQ: MARA) Healthcare $0.52 51.47% Forward Pharma A/S (NASDAQ: FWP) Basic Materials $1.53 43.57% Dixie Group Inc. (NASDAQ: DXYN) Healthcare $1.40 42.86% Trevena Inc. (NASDAQ: TRVN) Services $1.41 39.60% Alliance MMA Inc. (NASDAQ: AMMA) Healthcare $4.95 36.18%Don't Miss Out: The Treasury is sitting on an $11.1 billion cash pile, and a loophole entitles Americans to a sizable portion. Some are collecting $1,795, $3,000, or $5,000 every month thanks to this powerful investment…
- [By Joseph Griffin]
Get a free copy of the Zacks research report on Top Image Systems (TISA)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Top 5 China Stocks To Own For 2019: Focus Media Holding Limited(FMCN)
Advisors' Opinion:- [By Stephan Byrd]
An issue of Focus Media Holding Limited (NASDAQ:FMCN) bonds fell 0.9% against their face value during trading on Monday. The high-yield debt issue has a 7.25% coupon and will mature on April 1, 2023. The bonds in the issue are now trading at $99.13 and were trading at $98.13 last week. Price moves in a company’s bonds in credit markets sometimes anticipate parallel moves in its share price.
- [By Stephan Byrd]
An issue of Focus Media Holding Limited (NASDAQ:FMCN) debt fell 1.1% against its face value during trading on Tuesday. The debt issue has a 7.5% coupon and is set to mature on April 1, 2025. The debt is now trading at $97.63 and was trading at $98.50 last week. Price changes in a company’s debt in credit markets sometimes anticipate parallel changes in its stock price.
Top 5 China Stocks To Own For 2019: Clean Diesel Technologies Inc.(CDTI)
Advisors' Opinion:- [By Logan Wallace]
Shares of CDTi Advanced Materials Inc (NASDAQ:CDTI) hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $0.33 and last traded at $0.36, with a volume of 500 shares trading hands. The stock had previously closed at $0.36.
- [By Stephan Byrd]
Here are some of the media stories that may have impacted Accern Sentiment’s analysis:
Get Molecular Templates alerts: Trading Center: Watching the Levels for Molecular Templates, Inc. (:MTEM): Move of 0.02 Since the Open (stocknewscaller.com) Molecular Templates (MTEM) Announces Clinical Data at 2018 ASCO Meeting (streetinsider.com) Gallbladder Cancer Treatment Sales Market Size by Players, Regions, Type, Application and Forecast to 2025 (exclusivereportage.com) ATR in spotlight EnSync, Inc. (NYSE:ESNC), CDTi Advanced Materials, Inc. (NASDAQ:CDTI), Molecular Templates, Inc … (stocksnewspoint.com)MTEM has been the subject of several research analyst reports. ValuEngine lowered shares of Molecular Templates from a “hold” rating to a “sell” rating in a research report on Thursday, March 1st. Zacks Investment Research raised shares of Molecular Templates from a “sell” rating to a “hold” rating in a research report on Thursday, June 7th. Four analysts have rated the stock with a hold rating and one has given a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $5.20.
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