China's Tencent slips after cloud service price cuts

China Mobile

18/05/2023 03:33

** Shares of Tencent Holdings  0700.HK  slip as much as 3.9%
to HK$329.40, on track for biggest one-day pct decline since
April 12 if losses hold
    ** Stock biggest pct loser in the Hang Seng Index  .HSI ,
Hang Seng Tech Index  .HSTECH , Hang Seng Commerce & Industry
Index  .HSNC  
    ** Chinese internet giant is cutting prices for cloud
services by up to 40% from June amid similar moves from rivals
that have plunged the sector into a price war 
    ** Alibaba  9988.HK  said last month it would slash prices
for some cloud products by up to 50%, while China Mobile
 0941.HK  said some services would be cut by up to 60% for a
limited time
    ** Meanwhile, Tencent marked a return to revenue growth in
the first quarter, revenue rose 11% YoY and beat analyst
expectations
    ** Jefferies maintains "buy" rating, saying 1Q revenue beat
on better-than-expected online games revenue, while non-IFRS
operating profit and earnings came in ahead of estimates 
    ** The Hang Seng Commerce & Industry Index climbs 0.5% and
the Hang Seng Tech Index gains 0.9%
    ** The Hang Seng China Enterprises Index  .HSCE  rises 1%,
and the Hang Seng Index adds 0.9%
    ** As of last close, the stock had risen 8.1% this year

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))