Tencent's stock has soared due to success of "Dungeon & Fighter Mobile" game

From Barron’s: 2024-06-28 10:48:00

Chinese tech stocks like Alibaba and JD.com are struggling in 2024 due to geopolitical tensions and China’s economic slowdown. However, Tencent stands out with a 27% rally this year, increasing its market capitalization by $90 billion.

Tencent’s success is attributed to the launch of “Dungeon & Fighter Mobile,” a blockbuster video game. The game’s revenue surpassed $270 million in a month, driving Tencent’s stock performance.

While Beijing’s crackdown on technology companies has impacted Chinese tech stocks, Tencent’s growth shows a pathway to recovery. The success of “Dungeon & Fighter Mobile” highlights the potential for a return to growth in Chinese tech companies.



Read more at Barron’s: Alibaba Stock Has Languished While Tencent Has Soared. One Reason Why.