In August 2022, Tencent reported a drop in quarterly revenue for the first time in 18 years. The investment bank Goldman Sachs believes that the situation will not improve in the third quarter. According to their estimates, the revenue of the Chinese giant will fall by 1%, and operating profit — by 8%.
Nevertheless, experts predict that in 2023, Tencent’s revenues will begin to grow again, as the company is going to “rationalize costs.” Among the growth drivers are the increased monetization of WeChat and the release of Undawn zombie survival.
Against the background of the Goldman Sachs report, Tencent shares fell by 4% to $31 apiece.