The Development of Technology Stocks

The return of NetEase (SEHK:9999) and JD.com (SEHK:9618), plus the Nasdaq’s uniqueness, is conducive to the development of technology stocks. Among them, Tencent (SEHK:700) has regained its true character. Historical high. Of course, the reason behind the rapid rise is not only the concept hype, but also because of the following three new selling points, which makes investors expect business breakthroughs and growth will accelerate.

1. Two heavyweight mobile games launched in the second half of the year Tencent plans to launch two ace mobile games “Dungeon and Warriors” and “League of Legends” in the second half of the year. The computer version of the former has been launched in the market as early as 2008. The number of online players exceeded 1 million that year. There was a boom in the mainland. Even 12 years later, many players still play this game today.

According to Xiaohulu, a big data platform for live streaming on the mainland, “Dungeon and Warrior” has recently ranked 8th in the game live broadcast list. There are nearly 10,000 active anchors in a single day, although it is much less than the nearly 65,000 anchors of the first “Glory of the King”. But in terms of classic games, it is already very powerful. Moreover, Tencent announced that the number of priority appointments for “Dungeon and Warriors” has exceeded the 40 million mark. I believe that after the official launch, it is expected to reignite the trend of the year.

As for the latter, “League of Legends” has always been one of Tencent’s ace games, and the mobile game version is much more anticipated by the market. Earlier games were closed tested in the Philippines and Brazil. It was reported that the response was good, and the mobile game version required only 15 to 18 minutes per game, which is half the time of the final game compared to the computer version. It caters to the habits of mobile game players.

Tencent launched the two major ace mobile games at a similar time. Obviously, the sword is about to capture the entire mobile game market. Moto expects that the two games will bring Tencent RMB 25 billion in revenue in 2021, driving the overall game revenue to increase by 13%.

2.QQ Huigou low-key test intends to open up the online shopping market Tencent recently posted a tweet on QQ called “QQ Huigou, invite you for internal testing”, the gameplay is that the user shares the app’s favorite product generation applet to friends , When friends buy goods, they can get commissions. However, the current “QQ Huibu” products are provided by JD.com (NASDAQ: JD) and Pinduoduo (NASDAQ: PDD).

In addition, QQ also added “Live Shopping” and “QQ Group Window” functions. The former helps the anchor live broadcast on QQ, users buy directly on the live interface, the latter is sold by the group owner in the group, and the group members buy it.

All three new functions revolve around new retail. It seems that Tencent is working hard to develop e-commerce business again through small programs. Compared with other platforms, Tencent focuses on the communication between sellers and users. Different sales models, such as Taobao or Pinduoduo, are mainly listed by sellers on the platform. Although Tencent’s current development in e-commerce is only in the “BB class” stage, it is not the same as Taobao and JD.com, but it has many QQ users and is supported by platforms such as WeChat Pay, and its business development is expected to be a milestone.

3. Integrate its platforms to expand its ecosystem. Tencent has recently continued to integrate its companies, such as replacing the management or directors of Cat’s Eye Entertainment (SEHK: 1896) and Reading (SEHK: 772). There are reports citing news that the reform is because Tencent sees a lack of connections between various platforms.

For example, after users quit games owned by Tencent, they may go to live video sites, such as B stations, Kuaishou, Douyin and other video platforms to search for new games. During this period, users may be lost to competitors, so Tencent decided to reform and integrate, hoping to form its own The ultimate goal of the ecosystem is to make users only use Tencent’s platforms.

Among them, the fastest possible result is that Tencent merged the two live broadcast platforms “Betta” and “Tiger”. If this becomes true, it is expected to integrate platform traffic, form a stronger industry leader, and reduce competition costs.

Conclusion Tencent’s three new selling points have indeed given investors plenty of room to look forward to. The big banks have also taken the lead in expressing their support. Among them, Moto has given a target price of 600 yuan for the “most cattle”. From the author’s perspective, the short-term rise of 476 yuan always depends on whether the performance of the two new mobile games can be handed in; as for the rise of 500 yuan and 600 yuan, it depends on the integration of the e-commerce business and its holding company Effect.

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The Development of Technology Stocks - /10

Summary

The return of NetEase (SEHK:9999) and JD.com (SEHK:9618), plus the Nasdaq's uniqueness, is conducive to the development of technology stocks.

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