Chinese internet giant Tencent Holdings (HK:0700) (TCEHY) aims to boost its sales with its short video feature, WeChat Channels. As per a LatePost report, Tencent is on track to hit 100 billion yuan worth of e-commerce gross merchandise value (GMV indicates the total value of goods sold on a platform) through its WeChat Channels in 2023. The report also suggests that Tencent will increase the staff in its live-streaming e-commerce business and offer additional products.
Tencent is also pursuing the WeChat team to build a payment infrastructure to enable online transactions for live-streaming customers. The company hopes to attract affluent customers who frequent WeChat Channels and do not shop on rival apps. For Tencent, Channels (also called WeChat Video Accounts) raked in advertising revenue worth 3 billion yuan in the second quarter of 2023 and meaningfully higher figures in Q3 2023.
WeChat boasts 1.34 billion users, a massive number that could be converted into potential e-commerce customers. Tencent reported a 20% jump in its online advertising revenue in Q3 2023, driven by robust ad demand on WeChat Channels. The company is vying to capture a larger market share as rivals Kuaishou and Douyin deliver billions and trillions worth of GMV, respectively, through short video platforms and live streaming.
What is Tencent Price Target?
On TipRanks, 0700 stock commands a Strong Buy consensus rating based on ten Buys and one Hold rating. The Tencent Holdings share price target of HK$446.83 implies 43.5% upside potential from current levels. Year-to-date, 0700 shares have lost 4.4%.
