$TENCENT (00700.HK)$According to the first quarter earnings report, overall revenue and profit fell short of expectations, and today's decline was nothing other than that.
Until now, my strategy has always been to split the capital of the Internet company in at least 3 parts.
●One copy is waiting for market pessimism to pass: this one arrived in early 2022;
●One is waiting for relevant policies to be implemented. There was an important meeting some time ago, which is considered to have set a new tone for the general policy:
“Implementing Normalization of the Platform Economy and Introducing Specific Measures to Support Development”, news members can search based on keywords. It's just that the implementation of the policy I mentioned still needs to be further refined; I can only say that the reason behind the bottom line is now half of it.
●The last one is to wait for the financial data to stabilize.
Judging from this financial report, the financial data clearly has not stabilized. This is mainly reflected in the weakness of 2C; 2B is actually fine.
1 Value-added services
Revenue of $72.7 billion was flat year on year, up 1% month on month.
As far as the game business is concerned, the home dividend is over; users who use games as entertainment because they stay at home have almost penetrated. Instead, the lack of ability to pay due to macroeconomic impacts began to affect performance. This is at the same time as the overall consumer market, which is not good.
This is just like the home dividend, which is good for e-commerce in the short term, is still affected by ability to pay in the long term.
My opinion is that domestic game revenue should basically recover in line with the macro situation and consumer market.
The growth rate of international games is also slowing down...