Tencent Holdings early Wednesday reported third-quarter earnings that topped estimates but sales were a tad light. Tencent stock jumped.
The China-based internet services company reported adjusted earnings of 47 cents per U.S. share on revenue of $19.7 billion. Analysts expected Tencent to report earnings of 45 cents a share on revenue of $20 billion. Sales fell 2% year over year in local currency.
The company also announced it will distribute most of its $22 billion stake in meal delivery giant Meituan to investors. It plans to distribute more than 958 million shares of Meituan stock as a special dividend. That would leave Tencent with a 1.5% stake in the company.
Tencent Stock Action
Tencent stock climbed 5.2%, closing at 38.92 on the stock market today.
The company is one of the largest internet companies in China, along with Alibaba Group and JD.com.
Fueled by its popular WeChat app, Tencent is China's leader in online messaging and payment services. It's also a leading provider of online gaming, and has a burgeoning business in cloud computing.
Tencent stock has been on a nearly two-year slide. It peaked at 99.40 in February 2021. Tencent stock ended the regular session Tuesday at 37.
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