Bloomberg reported on the 14th, Beijing time, As investors began to consider large-scale spending of Tencent Holdings, after the stock price hit a record high in January, the market value of the Internet giant has dropped from the dizzying high by 82 billion US dollars.
The financial report scheduled for release on Wednesday will show that rising costs and investments will hurt the profitability of Asia's largest listed company. Although Tencent has said that it is necessary to sacrifice short-term profit margins to anchor future growth, analysts worry that The profits of the company's mobile games can not offset the decline of its most profitable platform - the desktop sector - performance.
Tencent, which is based in Shenzhen, has been expanding into new business areas such as cloud computing and is paying for new content. This strategy led to a 72% increase in cost in the fourth quarter of last year. According to the average estimate of 11 analysts compiled by Bloomberg, The gross profit margin of Tencent's latest report period will be less than 47%, which is the first time since the earliest relevant data record in 2003.
Although still bullish on Tencent's share price, brokers such as Citigroup and Deutsche Bank have lowered their 2018 sales or profit expectations for the company.