Tencent Holdings Ltd ADR
TCEHY: PINX (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $72.00 | Dkym | Klgdczlfht |
Tencent Leverages Unrivaled Network Effects to Fuel Growth on Multiple Fronts
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Business Strategy and Outlook
Over the past decade, Tencent has capitalized on the industry shift toward mobile gaming. The firm owns some of the world's most popular titles, like Honor of Kings and PUBG Mobile. To date, games remain Tencent's primary monetization model--as we estimate more than 40% of the group's operating income comes from this segment. Tencent should continue to leverage its unrivaled access to user data and financial capital to create innovative, high-quality, and long-cycle games with a mobile-first approach.