Shares of Chinese tech giant Tencent rose about 5 percent on Monday, Aug. 24 in Hong Kong after the Trump administration explained the WeChat ban. White House officials privately reassured U.S. companies that they can still do business with WeChat, which is a messaging and mobile payment application in China.
When does the WeChat ban start in the U.S.?
Tencent stock rose the most in two weeks after the Trump administration clarified that its ban on the WeChat application won't be as broad as feared. White House officials have reached out privately to Apple. Officials realized that a complete ban on WeChat could have a devastating impact on the U.S. technology, gaming, retail, and telecommunications industries.
U.S. WeChat users have filed a lawsuit against President Trump for banning the messaging application. President Trump banned U.S. transactions with WeChat starting on September 20.
Why is there a ban on TikTok and WeChat?
Last week, President Trump issued executive orders banning U.S. transactions with WeChat and TikTok applications due to privacy concerns. While the move against WeChat owner Tencent Holdings was a huge surprise, the action against TikTok owner Bytedance wasn't.
According to a MarketWatch report, “The executive order took aim directly at WeChat, which has more than 1 billion users worldwide, and whose data collection threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information.” The report added, “But the wording of the order made it unclear if the ban affected just WeChat or all of Tencent’s holdings.”
Tencent is the world’s largest and most valuable company. The company has significant stakes in Tesla, Snap, and U.S. videogame companies like Riot Games and Activision Blizzard.
What is Tencent's stock price today?
Tencent is listed on the Hong Kong Exchange under stock code 0700. On Monday, Tencent stock closed 5.8 percent higher at 548 Hong Kong dollars. The stock has risen by 8.6 percent in the last five days. However, the stock has risen by 68.1 percent in the last year.
Tencent stock is trading 2.8 percent below its 52-week high of 564 Hong Kong dollars and 75.5 percent above its 52-week low of 312.20 Hong Kong dollars. Year-to-date, the stock had risen by 45.9 percent as of Monday.
What is Tencent's stock forecast?
Currently, the consensus Tencent stock price forecast is 388.16 Hong Kong dollars, which suggests about a 29.2 percent downside potential from the current level. Tencent stock has a peak target price of 555.05 Hong Kong dollars, which suggests a 1.3 percent upside potential. The stock has a base target price of 321.25 Hong Kong dollars, which suggests a 41.4 percent downside potential. Also, Tencent stock carries a consensus strong buy rating.