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100 _aSahu; Benudhar
_935616
245 _aCan Tencent Holdings Rebound from Its Fall?
300 _a28-47 p.
440 _aThe IUP Journal of Management Case Studies
_v XIX (4).
_935705
520 _aThe case is about the troubles faced by Tencent Holdings Limited (Tencent), once the most valuable company in China by market capitalization. Tencent, one of the world’s largest internet companies, had become the most powerful mobile ecosystem in China. It became the first Chinese technology company to join the elite US$500 billion market capital club, backed by its huge revenue from video games, advertising, and social media businesses. Climbing on the growth drivers, Tencent’s stock price reached its peak in January 2018, but investor sentiments soured after a series of troubles cropped up for the company including a drop in its profits and a regulatory crackdown on gaming in China. Additionally, Tencent’s growing debt position, massive investments, overseas marketing strategy, and trade war fears all contributed to the decline in its stock price value. Investors voiced doubts about the firm’s declining profit margins and its ability to keep innovating. Amid regulatory hurdles, the company went in for a strategic reorganization, took global expansion initiatives, and introduced anti-addiction measures to limit play time for vulnerable segments. Analysts were optimistic about Tencent’s future and hoped that its strong long-term growth prospects would help the company bounce back in the coming days. However, with competition growing in the market and some segments facing saturation, can Tencent maintain its stock price valuation?
653 _aGame monetization
653 _aSustainable earnings growth
653 _aPerpetuity Growth Method,
653 _aEBITDA Multiple Method
700 _aPerepu; Indu
_935617
700 _aTripathy; Trilochan
_935618
700 _aPurkayastha, Debapratim
_935619
773 0 _030430
_977925
_aMURTHY, E N
_dIUP PUBLICATION HYDERABAD
_o55511286
_tCASE FOLIO
942 _2ddc
_cCSD