1/
If you want to take advantage of low prices in China I think $TCEHY is the best bet. $BABA is slightly cheaper, but Tencent is higher quality with better management imo. Both trade at ~10-12x NTM earnings if you back out investments and cash.
If you want to take advantage of low prices in China I think $TCEHY is the best bet. $BABA is slightly cheaper, but Tencent is higher quality with better management imo. Both trade at ~10-12x NTM earnings if you back out investments and cash.
2/
Both have regulatory risks, maybe slightly less so for $TCEHY since they are somewhat globally diversified through the investment portfolio.
$BABA has huge upside (uncertain) with their market leading cloud business. But Tencent could benefit from their own cloud as well.
Both have regulatory risks, maybe slightly less so for $TCEHY since they are somewhat globally diversified through the investment portfolio.
$BABA has huge upside (uncertain) with their market leading cloud business. But Tencent could benefit from their own cloud as well.
3/
$TCEHY core business offers slightly more growth imo. But again, depends on how $BABA cloud works out for overall growth.
If I had to choose, I’d prefer my money with Pony Ma. Although I’ve got a bet on both horses in the race.
$TCEHY core business offers slightly more growth imo. But again, depends on how $BABA cloud works out for overall growth.
If I had to choose, I’d prefer my money with Pony Ma. Although I’ve got a bet on both horses in the race.
4/
Everyone is quick to say ‘but China’ and can’t move past the regulatory risks. But at some point valuation justifies the risk. I personally think we are at that valuation now. Maybe I’m wrong. We will see in 5-10yrs.
Everyone is quick to say ‘but China’ and can’t move past the regulatory risks. But at some point valuation justifies the risk. I personally think we are at that valuation now. Maybe I’m wrong. We will see in 5-10yrs.
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