Tencent Holdings (TCEHY) reported first-quarter results early Thursday that met on sales but missed on the bottom line. Tencent stock fell.
The China internet giant reported adjusted earnings of 52 cents a share on revenue of $20.6 billion. Analysts expected Tencent to report earnings of 54 cents on revenue of $20.6 billion, according to FactSet. Revenue climbed 25% in local currency from the year-ago period.
Tencent stock, which trades over the counter in the U.S., dropped 2.2%, near 77, during afternoon action on the stock market today.
Fueled by its popular WeChat app, Tencent is China’s leader in online messaging and payment services. It ended the quarter with 1.24 billion users of its WeChat platform, up 3% from the year-ago period. It also now has 125 million subscribers for its streaming video services, up 12%.
Tencent Stock: Investing In Cloud, Video, Games
Tencent said it will invest a larger portion of its incremental profits this year in areas including cloud services, video content and game.
“We believe that we are still in the early stage of the global digital transformation,” the company said in written remarks with the Tencent earnings release. “The advance of technology will present ample opportunities for our Consumer Internet and Industrial Internet activities.”
Tencent revenue has been growing at a steady double-digit pace.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
YOU MAY ALSO LIKE: