Chinese tech giant Tencent Holdings (TCEHY) is set to report its fourth-quarter earnings results on March 19 before the market opens. Analysts are expecting earnings per share to come in at $0.78 on revenue of $23.22 billion, which equates to 25.8% and 8.2% year-over-year increases, respectively, according to TipRanks’ data. This is ideal because earnings per share should grow faster than revenue, as this demonstrates a high degree of operating and financial leverage in the business.
However, Tencent is not done growing yet. Indeed, the firm recently introduced new artificial intelligence tools that can turn text or pictures into 3D images and graphics. This is part of the company’s plan to improve its AI capabilities in order to create better user experiences and increase operational efficiency, especially for its Online Gaming and Social Networking segments.
Interestingly, one of Tencent’s new AI tools is called Hunyuan3D-2.0 and is made up of two parts: one that creates the shape of an object and another that adds texture and color. This technology can be used to make games and other content look more realistic. It is worth noting that Tencent is on a five-quarter earnings win streak, and it will be interesting to see if the company’s investments in AI will help it extend this streak.
Is TCEHY Stock a Good Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for TCEHY Stock. Indeed, the summary section pictured below shows that 16 indicators are Bullish, compared to six Neutral and zero Bearish indicators. However, this could change following tomorrow’s earnings report.
See more TCEHY technical analysis
Questions or Comments about the article? Write to editor@tipranks.com