Ultime notizie per Tencent Holdings (OTC:TCEHY) Azioni

Tencent Holdings

TENCENT HOLDINGS ADR

Tencent holds a prominent position in China's internet sector, with a diverse portfolio of products and services used daily by a significant portion of the population. The company is the world's largest video game publisher and owns Honor of Kings, a top-grossing mobile game globally. Tencent also operates WeChat, China's largest social media super app, which has become deeply integrated into the daily lives of Chinese people for communication, entertainment, shopping, and more. Beyond its offerings, Tencent is a significant player in global venture capital and investment. The company holds substantial stakes in leading tech companies, including PDD, Kuaishou, and Epic Games.

TENCENT HLDGS UNSP/ADR by Tencent Holding Ltd.

Tencent Holdings Ltd

Baldur&#8217;s Gate 3 is showing no signs of slowing down, with more players jumping into the<a href="https://www.benzinga.com/general/gaming"> game than ever. </a>
According to Michael Douse, Larian Studios' director of publishing, the game's average daily peak concurrent players are up 3% compared to last year, while average daily active users have increased by 20%.
See Also: <a href="https://www.benzinga.com/general/gaming/24/11/42093704/starfield-reaches-15-million-players-with-updates-new-content">Starfield Reaches 15 Million Players With Updates, New Content</a>
"If you zoom out on our sales chart, it looks like the heartbeat of a happy little guy," Douse shared on social media platform X.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I am also happy to announce we have achieved 1 (one) more sale in The Holy See, the Vatican itself. Thank you Mr Pope and enjoy the game.
&mdash; Very AFK (@Cromwelp) <a href="https://twitter.com/Cromwelp/status/1858534543206347137?ref_src=twsrc%5Etfw">November 18, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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<h3 class="wp-block-heading">Modding Fuels The Game's Continued Success</h3>
Part of the game's staying power is its modding community. Since Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) backed Larian added official mod support with Patch 7, fans have downloaded over 50 million mods. Some mods have even brought humor to the table, with 10,000 downloads dedicated to renaming Withers, the game's undead NPC, to "Bone Daddy."
Douse described the mods as "very good," reflecting how they continue to attract and engage players. Larian's CEO, Swen Vincke, previously called mod support a way for players to take over and expand the game's world.
<h3 class="wp-block-heading">What's Next For Larian Studios</h3>
While Baldur's Gate 3 remains a hit, Larian is already working on its next projects. The studio <a href="https://www.benzinga.com/general/gaming/24/03/37882963/sad-news-for-baldurs-gate-3-fans-larian-studios-ends-downloadable-content-sequel-plans-moves-beyon">briefly considered Baldur's Gate 4 </a>but decided to explore something new. 
<a href="https://www.benzinga.com/general/gaming/24/05/38938485/larian-studios-creator-of-baldurs-gate-3-launches-seventh-studio-for-very-ambitious-rpgs">Two games are currently in development</a>, both based on original ideas. Larian has teased these as the studio's "best work ever," though details remain secret for now.
Read Next:
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<li><a href="https://www.benzinga.com/general/gaming/24/11/42068231/sony-in-talks-to-acquire-elden-ring-publisher-kadokawa-report">Sony In Talks To Acquire Elden Ring Publisher Kadokawa: Report</a></li>
</ul>
Image courtesy: Larian Studios.

Gaming

General

TCEHY

Baldur's Gate 3 Sees More Players In 2024 Than During Launch Year: Here's Why

Chinese gaming giant Tencent Holding Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) reported fiscal third-quarter 2024 results Wednesday.
Revenue grew 8% year-on-year to $23.9 billion (CNY 167.19 billion), quashing the <a target="_blank" href="https://www.prnewswire.com/apac/news-releases/tencent-announces-2024-third-quarter-results-302303956.html" rel="noreferrer noopener">analyst consensus estimate of $23.4 billion</a>.
Combined, the MAU of Weixin and WeChat grew by 3% year-on-year&nbsp;to 1.38 billion. Mobile device MAU of QQ grew 0.7% year-on-year&nbsp;to 562 million.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/11/41907519/sea-ltd-q3-earnings-e-commerce-leads-growth-shopee-on-track-to-hit-gmv-guidance" rel="noreferrer noopener">Sea Q3 Earnings: E-Commerce Leads Growth, Shopee On Track To Hit GMV Guidance, Stock Soars</a>
Fee-based VAS registered subscriptions grew 9% year-on-year&nbsp;to 265 million.
Revenues from VAS increased by 9% Y/Y to&nbsp;CNY82.7 billion. International Games revenues were&nbsp;CNY14.5 billion, up 9% Y/Y, due to robust performances from games including PUBG MOBILE&nbsp;and Brawl Stars. Domestic Games revenues increased by 14% Y/Y to&nbsp;CNY37.3 billion, driven by games including VALORANT, Honour of Kings, Peacekeeper Elite, and DnF Mobile.
Social Networks revenues rose by 4% Y/Y to&nbsp;CNY30.9 billion, supported by growth in app-based game virtual item sales, music subscription revenues and Mini Games platform service fees.
Revenues from Marketing Services were CNY30.0 billion, up 17% Y/Y, driven by robust advertiser demand for Video Accounts, Mini Programs, and Weixin Search inventories. Revenues from FinTech and Business Services rose by 2% Y/Y to CNY53.1 billion.
Gross profit climbed 16% Y/Y to $12.7 billion. The margin expanded by 400 bps to 53%. Adjusted operating profit increased 19% Y/Y to $8.7 billion. The margin grew 400 bps to 37%.
Adjusted net income attributable to equity holders increased 33% Y/Y to $8.5 billion. Adjusted EPS of $0.89 beat the $0.88 <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">analyst consensus estimate</a>.
As of September 30, 2024, Tencent had $60.7 billion in cash and equivalents and generated $8.3 billion in free cash flow.
Tencent&#8217;s Chairman and CEO, Ma Huateng, highlighted strong third-quarter revenue growth, driven by the consistent global performance of established games and contributions from promising new titles. He noted the company&#8217;s enhanced eCommerce approach around Mini Shops, aiming for a seamless and reliable transaction experience across the entire Weixin ecosystem. He also emphasized the growing advantages of AI integration across Tencent&#8217;s products and operations, including marketing services and the cloud. The company plans to continue investing in AI technologies and solutions to benefit users and partners.
Price Action: TCEHY stock closed lower by 2.78% at $51.04 Tuesday.
Photo via Shutterstock
Also Read:
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<li><a href="https://www.benzinga.com/news/earnings/24/11/41908838/tencent-musics-q3-revenue-tops-1-billion-but-monthly-active-users-fall-3-stock-reacts" target="_blank" rel="noreferrer noopener">Tencent Music&#8217;s Q3 Revenue Tops $1 Billion, But Monthly Active Users Fall 3%, Stock Reacts</a></li>
</ul>

Earnings

Equities

News

Tencent Q3 Earnings: Gaming And AI Fuel Profit Growth, Pony Ma Eyes E-Commerce Expansion

Tencent Holdings Q3 Adj EPS $0.89 Beats $0.88 Estimate, Sales $23.90B Beat $23.38B Estimate

Earnings Misses

Tencent Holdings Q3 2024 Adj. EPS RMB6.34, Inline, Sales RMB167.200B Miss RMB167.855B Estimate

Chinese artificial intelligence (AI) companies, including tech giants Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and ByteDance, are investing heavily in advertising to gain a foothold in the competitive AI market.
In the third quarter alone, these companies spent over 500 million yuan ($70.2 million) on promotional campaigns for various AI applications, SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3285132/chinese-ai-firms-are-splurging-ads-report-finds-chatbot-market-gets-crowded" rel="noreferrer noopener">reports</a>.
Among the big spenders, Alibaba allocated nearly 200 million yuan to promote Quark, a cloud storage and online search platform enhanced with generative AI features.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41755579/fidelity-national-information-services-banking-capital-markets-growth-drive-optimis" rel="noreferrer noopener">Fidelity National Information Services' Banking, Capital Markets Growth Drive Optimism, Analysts Say</a>
Spending on its ChatGPT-like service, Tongyi Qianwen, was notably lower at 4.5 million yuan. A Tongyi Qianwen spokesperson disputed this figure, SCMP says.
The significant marketing budgets have sparked concerns within China about the sustainability of such high spending.
Chinese AI startup Moonshot AI, backed by Alibaba and Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), is among the top ad spenders, with approximately 150 million yuan devoted to promoting its chatbot.
The company's substantial ad budget reflects the increasingly crowded AI market, where hundreds of chatbots are vying for user attention. However, a source close to Moonshot told the SCMP that AppGrowing's data on the company's ad spending is exaggerated.
Yan Junjie, CEO of Shanghai-based AI firm MiniMax, highlighted a fundamental difference in strategy between Chinese and U.S. AI companies.
While American companies rely on product capabilities to attract users, Chinese companies heavily invest in online marketing to differentiate their offerings.
Chinese tech giants Alibaba, Tencent, and Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) spent $7 billion on AI-focused infrastructure and processors in the first half of this year, a significant rise from last year.
Despite increased spending, China's AI capital investments lag behind U.S. firms like Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which <a target="_blank" href="https://www.benzinga.com/news/24/08/40550305/nvidia-tech-fuels-chinese-ai-growth-overseas-alibaba-ramps-up-7b-investment" rel="noreferrer noopener">spent $106 billion</a>. Wedbush analyst Dan Ives <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41151741/nvidias-ai-leadership-to-drive-1-trillion-market-growth-with-accenture-partnership-" rel="noreferrer noopener">projected $1 trillion</a> in AI capital spending by U.S. tech giants, with Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) a key beneficiary.
Price Action: BABA stock traded lower by 2.93% at $96.31 at the last check on Wednesday.
Also Read:
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<li><a href="https://www.benzinga.com//node/41773691" target="_blank" rel="noreferrer noopener">US-Listed Chinese Stocks Like Alibaba, JD, Nio Fall After Trump's Win &#8211; What's Going On?</a></li>
</ul>
Photo courtesy: Shutterstock

Emerging Markets

Tech

Media

AMZN

BABA

BIDU

GOOG

GOOGL

MSFT

NVDA

Alibaba's AI Strategy: Massive Ad Spend to Dominate Crowded Market

The United States has announced a ban on investments in China's semiconductor and AI sectors, potentially affecting Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) <a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41599095/team-bidens-ban-on-china-tech-investments-could-impact-teslas-ai-plans-report" rel="noreferrer noopener">and its operations in the region</a>.
The&nbsp;Video Game History Foundation&nbsp;(VGHF) and the&nbsp;Software Preservation Network&nbsp;faced a major setback in their ongoing campaign to preserve and grant research access to <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41583968/us-copyright-office-blocks-game-preservation-bid-thousands-of-classic-titles-critically-endangered" rel="noreferrer noopener">out-of-print&nbsp;video games</a>.
With the U.S. 2024 presidential election just days away, Vice President&nbsp;Kamala Harris&nbsp;is making a unique play to connect with gamers—an audience often <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41587554/kamala-harris-connects-with-gamers-via-fortnite-in-final-campaign-countdown" rel="noreferrer noopener">sidelined in&nbsp;political campaigns</a>.
Earnings
Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) reported third-quarter revenue of $88.27 billion, up 15% year-over-year, beating the Street consensus estimate of $86.31 billion. EPS of $2.12 exceeded the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41611263/alphabet-q3-earnings-highlights-revenue-beat-eps-beat-google-cloud-up-35-momentum-across-the-compan" rel="noreferrer noopener">Street consensus estimate of $1.84</a>.
Snap Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) reported third-quarter revenue of $1.373 billion, beating the&nbsp;consensus estimate&nbsp;of $1.358 billion. Adjusted EPS of 8 cents per share, beating analyst<a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41612544/snap-q3-earnings-revenue-beat-eps-beat-500m-buyback-ai-update-and-more" rel="noreferrer noopener"> estimates of 5 cents per share</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41618021/snap-touts-new-ad-formats-and-simple-snapchat-10m-users-trial-growth-driving-feature" rel="noreferrer noopener">Snap Touts New Ad Formats And &#8216;Simple Snapchat&#8217; — 10M Users Trial Growth-Driving Feature</a>
Gaming
Call of Duty: Black Ops 6&nbsp;has set a new franchise record for the biggest release ever, with sales on PlayStation and Steam jumping 60 percent compared to <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41662426/black-ops-6-shatters-records-call-of-dutys-biggest-launch-drives-60-sales-spike" rel="noreferrer noopener">last year&#8217;s&nbsp;Modern Warfare III</a>.
Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) officially denied rumors of layoffs and restructuring within the company, while acknowledging recent <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41609208/tencent-shuts-down-layoff-rumors-while-announcing-major-leadership-shake-up" rel="noreferrer noopener">changes in its&nbsp;leadership structure</a>.
Ubisoft has launched its first blockchain game, Champions Tactics: Grimoria Chronicles, a tactical NFT<a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/10/41632648/ubisoft-launches-blockchain-game-with-nfts-priced-as-high-as-64-000" rel="noreferrer noopener"> battler now available on PC</a>.
Sony Group Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) announced the November PlayStation Plus lineup, <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41633013/sony-adds-new-death-note-game-to-november-ps-plus" rel="noreferrer noopener">featuring Death Note Killer Within</a>.
Technology
A Russian court has ordered&nbsp;Alphabet Inc.‘s Google&nbsp;to pay a massive fine of $20 decillion for restricting content from Russian media outlets. The fine, which is expected to increase, is&nbsp;a result <a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41621390/google-just-got-fined-in-russia-and-its-more-than-the-worlds-gdp-20-decillion-for-blocking-media" rel="noreferrer noopener">of a long-standing legal dispute</a>.
Jim Cramer&nbsp;said that&nbsp;Alphabet plans to increase investments in artificial intelligence infrastructure next year can significantly <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41625103/jim-cramer-says-googles-ai-investment-next-year-should-be-fabulous-for-nvidia" rel="noreferrer noopener">benefit&nbsp;</a><a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41625103/jim-cramer-says-googles-ai-investment-next-year-should-be-fabulous-for-nvidia" rel="noreferrer noopener">NVIDIA Corp </a><a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41625103/jim-cramer-says-googles-ai-investment-next-year-should-be-fabulous-for-nvidia" rel="noreferrer noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</a>.
Smartphones
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is all set to&nbsp;integrate the powerful&nbsp;M4&nbsp;processor into its&nbsp;Mac&nbsp;lineup. The new chip will significantly increase core counts compared to its predecessor. This will ensure a marked improvement <a target="_blank" href="https://www.benzinga.com/news/24/10/41565581/mac-mini-may-shrink-to-apple-tv-size-as-cupertino-prepares-to-unveil-new-macs-this-week-expect-ai-an" rel="noreferrer noopener">in daily usage from older models</a>.
Apple is working on developing a new smart home display inspired by <a target="_blank" href="https://www.benzinga.com/news/24/10/41567694/apple-is-working-on-new-smart-home-display-inspired-by-imac-g4s-design-but-it-could-be-smaller-than" rel="noreferrer noopener">the&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41567694/apple-is-working-on-new-smart-home-display-inspired-by-imac-g4s-design-but-it-could-be-smaller-than" rel="noreferrer noopener">iMac G4's</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41567694/apple-is-working-on-new-smart-home-display-inspired-by-imac-g4s-design-but-it-could-be-smaller-than" rel="noreferrer noopener">&nbsp;design</a>.
The release of iOS 18.1 brought&nbsp;Apple&#8217;s&nbsp;new AI-powered features, known as&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/10/41593651/how-to-unlock-apple-intelligence-on-your-iphone-with-ios-18-1" rel="noreferrer noopener">Apple Intelligence</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41593651/how-to-unlock-apple-intelligence-on-your-iphone-with-ios-18-1" rel="noreferrer noopener">, to iPhone users</a>.
Apple has reportedly initiated initial manufacturing efforts for next year&#8217;s entry-level iPhone model, expected to be named the&nbsp;iPhone 17. For the first time, this early-stage development is taking place in India, moving away from <a target="_blank" href="https://www.benzinga.com/markets/asia/24/10/41616953/apple-wants-to-see-if-it-can-build-iphone-17-from-scratch-in-india-report" rel="noreferrer noopener">Apple&#8217;s traditional reliance on China</a>.
Apple introduced a&nbsp;fresh&nbsp;Mac mini&nbsp;Tuesday featuring the new M4 and M4 Pro chips, compactly engineered to maximize performance within a <a target="_blank" href="https://www.benzinga.com/news/24/10/41607481/apples-refreshes-mac-mini-smaller-form-factor-m4-chip-power-and-carbon-neutral" rel="noreferrer noopener">smaller 5×5-inch form factor</a>.
Artificial Intelligence (AI)
Sierra, the AI&nbsp;startup co-founded by former&nbsp;Salesforce co-CEO and&nbsp;OpenAI&nbsp;chairman&nbsp;Bret Taylor,&nbsp;has achieved a valuation of $4.5 billion <a target="_blank" href="https://www.benzinga.com/news/24/10/41591558/bret-taylors-ai-startup-sierra-hits-4-5b-valuation-just-a-year-after-launch-openai-chairs-latest-ven" rel="noreferrer noopener">following a successful funding round</a>.
OpenAI&nbsp;CFO&nbsp;Sarah Friar&nbsp;revealed that a monumental 75% of the AI startup&#8217;s revenue comes from consumer <a target="_blank" href="https://www.benzinga.com/news/24/10/41593078/openai-reveals-75-of-its-revenue-comes-from-one-service" rel="noreferrer noopener">subscriptions to just one service –&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41593078/openai-reveals-75-of-its-revenue-comes-from-one-service" rel="noreferrer noopener">ChatGPT</a>.
OpenAI&nbsp;announced&nbsp;that its flagship product, ChatGPT, is now capable of crawling the web for up-to-date news, sports scores,<a target="_blank" href="https://www.benzinga.com/news/24/10/41663190/openai-rolls-out-chatgpt-search-google-shares-slide" rel="noreferrer noopener"> stock quotes and more</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41566623/steve-huffman-says-people-go-on-google-to-land-reddit-results-it-has-answers-advice-perspectives-alp" rel="noreferrer noopener">Steve Huffman Says People Go On Google To Land Reddit Results: It Has &#8216;Answers, Advice, Perspectives&#8217; — Alphabet&#8217;s Search Dominance Under Threat?</a>

AAPL

SNAP

Sony Group Corporation American Depositary Shares

SONY

TSLA

Consumer Tech News (Oct 28-Nov 1): Apple Starts Manufacturing Entry-Level iPhone Model, US Bans Investments In China's Semiconductor & AI, & More

Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) officially denied rumors of layoffs and restructuring within the company, while acknowledging recent changes in its<a href="https://www.benzinga.com/general/gaming"> leadership structure. </a>
This response came after an internal email leaked, informing staff about significant personnel adjustments.
<h1 class="wp-block-heading">Key Leadership Changes</h1>
On Oct. 25, the internal email revealed that Zeng Yu, vice president of Tencent Interactive Entertainment Group (IEG), would no longer lead the technical line of the IEG or the Technology &amp; Content Platform within the Platform and Content Group.
See Also: <a href="https://www.benzinga.com/general/gaming/24/10/41464208/tencents-delta-force-hawk-ops-open-beta-to-launch-in-december-taking-aim-at-call-of-duty">Tencent&#8217;s Delta Force: Hawk Ops Open Beta To Launch In December, Taking Aim At Call Of Duty</a>
In a <a href="https://www.yicaiglobal.com/news/tencent-denies-rumored-downsizing-at-digital-entertainment-unit-confirms-big-staff-changes">statemen</a>t to Yicai, a Tencent spokesperson clarified that "more than 10 individuals" have been affected by these changes, but the company is not implementing widespread job cuts.
The spokesperson reiterated that Tencent's subsidiary, TiMi Studio Group, which employs around 6,000 people across 13 studios, is actively recruiting new staff. This contradicts earlier reports suggesting the company might merge teams and lay off about 1,200 employees, representing 20% of its workforce.
In addition to addressing rumors about potential job losses, Tencent also denied speculation about a 30% staff cut at its LightSpeed Studios.
<h1 class="wp-block-heading">Industry Context and Future Prospects</h1>
These leadership changes come at a time when Tencent is reportedly in discussions with Guillemot Brothers Ltd. about strategies to stabilize Ubisoft Entertainment SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>), which faces <a href="https://www.benzinga.com/general/gaming/24/09/41053665/ubisoft-faces-challenges-star-wars-outlaws-sales-struggles-assassins-creed-shadows-delay-employee-">several challenges</a>. These talks could lead to a potential buyout of Ubisoft, taking the publisher private.
Price Action: Tencent is currently trading at $53.82, down 0.49% in the past 24 hours, <a href="https://www.benzinga.com/pro/">according</a> to Benzinga Pro.
Read Next:
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<li><a href="https://www.benzinga.com/general/24/10/41356456/tencent-may-join-forces-for-ubisoft-bid">Tencent May Join Forces For Ubisoft Bid</a></li>
</ul>
Photo: Shutterstock.

Management

Global

UBSFF

Tencent Shuts Down Layoff Rumors While Announcing Major Leadership Shake-Up

Rupert Murdoch's Dow Jones and the&nbsp;New York Post have initiated legal proceedings against&nbsp;Jeff Bezos-backed AI firm&nbsp;Perplexity, alleging unauthorized use of their content and <a target="_blank" href="https://www.benzinga.com/news/24/10/41442679/rupert-murdochs-dow-jones-new-york-post-sue-jeff-bezos-backed-perplexity-for-copyright-infringement" rel="noreferrer noopener">redirection of traffic to its platforms</a>.
Entertainment
Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) has ceased allowing customers to subscribe to Hulu and Disney+ via Apple Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) App Store, thereby avoiding the iPhone <a target="_blank" href="https://www.benzinga.com/general/entertainment/24/10/41443702/disney-and-hulu-stream-away-from-apples-30-toll-bridge-what-it-means-for-the-iphone-maker" rel="noreferrer noopener">maker's in-app purchase fees</a>.
Netflix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) has shut down its Southern California AAA game studio, Team Blue, marking a significant <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41462659/netflix-ends-aaa-game-development-at-california-studio" rel="noreferrer noopener">shift in its&nbsp;gaming ambitions</a>.
Gaming
Ahead of Call of Duty: Black Ops 6's release,&nbsp;Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Activision has announced a new anti-cheat initiative aimed at removing cheaters from the game within <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41435803/activisions-new-ai-strategy-aims-to-ban-call-of-duty-cheaters-within-one-hour-of-their-first-match" rel="noreferrer noopener">one hour&nbsp;of their first match</a>.
Insomniac Games has announced that&nbsp;Marvel&#8217;s Spider-Man 2&nbsp;will not receive any additional story content, effectively ending fan hopes <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41438398/insomniac-games-confirms-no-additional-story-add-ons-for-marvels-spider-man-2" rel="noreferrer noopener">for&nbsp;downloadable content (DLC)</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/esg/24/10/41426513/plug-power-evgo-enovix-analyst-clean-tech-picks-for-navigating-election-exposure-hedging-uncertainty" rel="noreferrer noopener">Plug Power, EVgo, Enovix: Analyst Clean Tech Picks For Navigating Election Exposure, Hedging Uncertainty</a>
Tencent Holding Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) is set to launch the global open beta for Delta Force: Hawk <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41464208/tencents-delta-force-hawk-ops-open-beta-to-launch-in-december-taking-aim-at-call-of-duty" rel="noreferrer noopener">Ops on PC&nbsp;starting December 5</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41420451/openais-chinese-cousins-alibaba-and-bytedance-are-slashing-ai-costs-and-defying-us-chip-sanctions-be" rel="noreferrer noopener">OpenAI&#8217;s Chinese Cousins Alibaba, And ByteDance Are Slashing AI Costs And Defying US Chip Sanctions: Beijing&#8217;s Strength Is To &#8216;Build Fast, Build Reliably And Build Cheap&#8217;</a>
Naughty Dog has rolled out significant updates for The Last of Us Part 1 and The Last of Us Part 2 Remastered on <a href="https://www.benzinga.com/general/gaming/24/10/41466239/naughty-dogs-the-last-of-us-games-prepped-for-ps5-pro-with-4k-support" target="_blank" rel="noreferrer noopener">Sony Group Corporation</a><a href="https://www.benzinga.com/general/gaming/24/10/41466239/naughty-dogs-the-last-of-us-games-prepped-for-ps5-pro-with-4k-support" target="_blank" rel="noreferrer noopener">'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) PlayStation 5</a>.
Technology &amp; Smartphones
QUALCOMM Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) unveiled its latest high-end smartphone SoC, the&nbsp;Snapdragon 8 Elite, which boasts a new Oryon CPU <a target="_blank" href="https://www.benzinga.com/news/24/10/41445327/qualcomms-new-chipset-brings-multi-modal-generative-ai-to-android-phones-boosting-competition-with-i" rel="noreferrer noopener">and enhanced AI capabilities</a>.
QUALCOMM has been threatened by Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) with the cancelation of its chip design license, leaving the San Diego-based<a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41481425/softbank-backed-arm-threatens-to-cancel-qualcomms-chip-design-license-ahead-of-trial-in-december" rel="noreferrer noopener"> semiconductor giant with 60 days&#8217; notice</a>.
NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) quietly introduced a new AI model, Llama-3.1-Nemotron-70B-Instruct, that has reportedly outperformed <a target="_blank" href="https://www.benzinga.com/news/24/10/41422278/nvidias-new-free-open-source-ai-model-reportedly-outperforms-openais-gpt-4o-anthropics-claude-3-5-so" rel="noreferrer noopener">its competitors in benchmark tests</a>.
Indian billionaire&nbsp;Mukesh Ambani joined&nbsp;NVIDIA&#8216;s CEO&nbsp;Jensen Huang for a fireside chat in Mumbai on Thursday as the latter addressed the Nvidia AI Summit India <a target="_blank" href="https://www.benzinga.com/markets/asia/24/10/41509500/nvidia-ceo-jensen-huang-meets-indian-billionaire-mukesh-ambani-duo-forge-partnership-to-build-ai-inf" rel="noreferrer noopener">at the city&#8217;s Jio World Convention Centre</a>.
The duo discussed India&#8217;s information technology industry, which Huang said was world-renowned for its large-scale presence and deep expertise. In the past few years, 200,000 IT professionals have been <a target="_blank" href="https://www.benzinga.com/markets/asia/24/10/41509500/nvidia-ceo-jensen-huang-meets-indian-billionaire-mukesh-ambani-duo-forge-partnership-to-build-ai-inf" rel="noreferrer noopener">upscaled to work with AI</a>.
Chinese tech giant&nbsp;ByteDance Ltd.&nbsp;has dismissed an intern for allegedly disrupting the training of <a target="_blank" href="https://www.benzinga.com/news/24/10/41422474/tiktok-parent-fires-intern-for-maliciously-interfering-with-ai-training-denies-10m-damage-claims-ami" rel="noreferrer noopener">one of its artificial intelligence models</a>.
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is reportedly scaling back production of its $3,500 Vision Pro headset, shifting focus <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41499682/apple-to-cut-vision-pro-production-cheaper-model-expected-in-2025-report" rel="noreferrer noopener">toward a more affordable model for 2025</a>.
Artificial Intelligence
OpenAI&nbsp;rival&nbsp;Anthropic&nbsp;has unveiled an upgrade to its its AI model Claude 3.5 Sonnet along with introducing a new model, Claude 3.5 Haiku. The Claude 3.5 Sonnet model introduces a groundbreaking feature that allows it to interact with<a target="_blank" href="https://www.benzinga.com/news/24/10/41481214/now-ai-can-operate-computers-like-humans-openai-rival-backed-by-google-unveils-claude-upgrades-amid" rel="noreferrer noopener"> computers in a human-like manner</a>.
Marc Benioff, CEO of Salesforce, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>), took to social media to criticize Microsoft for <a href="https://www.benzinga.com/news/24/10/41444585/copilots-a-flop-because-microsoft-lacks-the-data-salesforce-ceo-slams-rebranding-of-ai-tool-to-agent" target="_blank" rel="noreferrer noopener">rebranding its Copilot as "agents."</a>
In a recent development,&nbsp;Character.AI&nbsp;has issued a public apology following the tragic death by suicide of a 14-year-old boy who had been interacting with their chatbot. The company has acknowledged the incident and announced updates to<a target="_blank" href="https://www.benzinga.com/news/24/10/41491088/ai-chatbot-maker-publicly-apologizes-after-teens-death-in-florida" rel="noreferrer noopener"> enhance the safety measures on their platform</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41420671/mark-zuckerberg-or-elon-musk-openai-ceo-sam-altman-says-hed-back-this-tech-titan-in-a-cage-fight" rel="noreferrer noopener">Mark Zuckerberg Or Elon Musk? OpenAI CEO Sam Altman Says He&#8217;d Back This Tech Titan In A Cage Fight</a>

NFLX

QCOM

Consumer Tech News (Oct 21-Oct 25): Apple May Scale Back Production Of Vision Pro Headset, Netflix Restructures Gaming Division

Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) is set to launch the global open beta for Delta Force: Hawk Ops on PC <a href="https://www.benzinga.com/general/gaming">starting Dec. 5. </a>
This free-to-play tactical first-person shooter, developed by Tencent's Timi Studio Group, aims to rival major titles like Call of Duty and Battlefield. Originally developed by NovaLogic, the Delta Force series first debuted in 1998 and saw several successful releases before NovaLogic closed in 2016.
See Also: <a href="https://www.benzinga.com/24/10/41356456/tencent-may-join-forces-for-ubisoft-bid">Tencent May Join Forces For Ubisoft Bid</a>
Tencent announced Delta Force: Hawk Ops last year for PC, consoles, and mobile, reviving the franchise. The game has gone through several alpha playtests, but the upcoming open beta will mark the first version in which player progress will not be reset.
The company revealed in a blog post that this beta is considered the "initial release version" of the game. Full live-service content updates will roll out alongside its first season, Genesis.
<h3 class="wp-block-heading">Gameplay And Features</h3>
The open beta will feature two primary game modes: Havoc Warfare, a 32-player multiplayer mode, and Hazard Operations, a squad-based PvPvE experience. New maps, operators, weapons, and vehicles will be introduced as part of Genesis, with ongoing updates planned.
Tencent has confirmed that paid content, including Battle Passes and cosmetic options for weapons and vehicles, will be available at the beta&#8217;s launch. However, the company insists there will be no &#8220;pay-to-win&#8221; elements.
<h3 class="wp-block-heading">Single-Player Campaign And Future Updates</h3>
A Black Hawk Down-inspired single-player campaign is in development but won't be part of the open beta. Tencent plans to introduce this mode at a later date. Future updates will also include new maps, modes, and improvements based on player feedback, with ongoing efforts to enhance performance, anti-cheat measures, and controller support.
Delta Force: Hawk Ops will be available on PC through Tencent&#8217;s official browser, Steam, and the Epic Games Store. PlayStation, Xbox, and mobile versions are expected to release in early 2025.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/05/39069011/tencents-new-hit-game-dnf-mobile-earns-140m-in-first-week">Tencent&#8217;s New Hit Game DnF Mobile Earns $140M In First Week</a></li>
</ul>
Photo: Shutterstock

Tencent's Delta Force: Hawk Ops Open Beta To Launch In December, Taking Aim At Call Of Duty

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and its Chinese hyperscalar rivals have responded to the domestic regulatory crackdown and economic weakness by opening their walled gardens to one another.
Alibaba will now allow merchants on its e-commerce platforms to access logistics services from rival JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) to accomplish their growth targets in a lackluster economy.
JD Logistics, which operates over 1,600 automated warehouses and employs about 370,000 delivery workers, directly competes with Alibaba&#8217;s Cainiao Smart Logistics Network.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41359993/alibaba-and-baidu-bet-big-on-autonomous-driving-back-700m-horizon-robotics-ipo" rel="noreferrer noopener">Alibaba And Baidu Bet Big On Autonomous Driving, Back $700M Horizon Robotics IPO</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/17061719/newplot-14.png" alt="" class="wp-image-600216" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/17061719/newplot-14.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/17061719/newplot-14-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
According to JD Logistics, a wide range of logistics services—from warehousing to shipping—will now be available to sellers on Alibaba&#8217;s significant platforms, Taobao and Tmall, SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3282626/alibaba-opens-walled-garden-rival-jdcoms-logistics-services" rel="noreferrer noopener">reports</a>.
Merchants can choose JD.com as their preferred courier service, enabling consumers to track their deliveries directly through Alibaba&#8217;s interfaces.
Both companies have been at odds for years, blocking each other&#8217;s services in their ecosystems. However, regulatory pressure and the slowing domestic economy have forced China&#8217;s tech giants to reconsider their approaches.
The shift toward more open ecosystems is becoming increasingly evident. For instance, Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) recently enabled users to shop directly on Alibaba&#8217;s Taobao through the WeChat app. Additionally, Taobao and Tmall will soon begin accepting WeChat Pay.
Meanwhile, China is weighing&nbsp;a fiscal stimulus of 6 trillion yuan, or $850 billion, in ultra-long special treasury bonds over the next three years after slashing the key rates to boost the economy.
Due to the announcements of stimulus measures, Alibaba and JD.com stocks saw gains of 21%- 51% in the last thirty days.
Investors can gain exposure to China&#8217;s tech barometer, Alibaba, through SPDR NYSE Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XNTK#NYSE">XNTK</a>) and Invesco Nasdaq Internet ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PNQI#NASDAQ">PNQI</a>).
Price Actions: At the last check on Thursday, BABA stock was down 0.86% to $101.29, and JD was down 1.95%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41336235/chinese-e-commerce-firms-alibaba-jd-pdd-gear-up-for-singles-day-shopping-festival" target="_blank" rel="noreferrer noopener">Chinese E-Commerce Firms Alibaba, JD, PDD Gear Up For Singles&#8217; Day Shopping Festival</a></li>
</ul>
Image by Tada Images via Shutterstock

Government

Regulations

PNQI

XNTK

Alibaba And JD.com Ease Rivalry, Share Logistics In Response To Economic Challenges

<h4>Key Takeaways:</h4>
<ul>
<li>Ubisoft&rsquo;s share price fell to a 10-year low in September due to poor sales and the delayed release of &ldquo;Assassin&rsquo;s Creed Shadows&rdquo;</li>
<li>Guillemot&nbsp;and Tencent, holding&nbsp;20.5% and 9.2% of Ubisoft voting rights respectively, would be acting in concert for a potential buyout&nbsp;</li>
</ul>
By Ken Lo
The game developer behind the action adventure &ldquo;Assassin&rsquo;s Creed&rdquo; has lately found itself on the losing side of a battle for market confidence.
Ubisoft, a French company listed on the Paris bourse, scored a hit with its combative gameplay when the franchise launched but has more recently struggled with its business performance, suffering a 58% drop in its share price this year that slashed the firm&rsquo;s market value to 1.3 billion euros ($141.6 million).
However, the beaten-down price could make the company an attractive takeover target, given Ubisoft&rsquo;s credentials in the gaming industry. And two main shareholders are reported to be considering riding to the rescue with a joint buyout that could take the company private.
According to&nbsp;<a href="https://finance.yahoo.com/news/tencent-guillemot-family-said-consider-134712826.html">Bloomberg</a>, the company&rsquo;s founders, the Guillemot family, have been in talks with strategic partner and fellow Ubisoft shareholder&nbsp;Tencent Holdings Ltd.&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>) about options including an acquisition. The report, quoting people with knowledge of the matter, said discussions were still at a preliminary stage. As of the end of April, Tencent held 9.2% of Ubisoft&rsquo;s net voting rights while Guillemot held approximately 20.5%. Therefore, market regulators would regard the two parties as acting in concert for any buyout bid.
Ubisoft did not directly comment on the report and the resulting market excitement, but issued a statement saying it &ldquo;regularly reviews all its strategic options in the interest of its stakeholders&rdquo; and would inform the market of any developments if and when appropriate. Tencent has so far stayed silent on the speculation.
<h3>Seeking A&nbsp;Savior</h3>
In the face of a plummeting Ubisoft share price, minority shareholders including AJ Investments and Blackstone Inc. had been putting pressure on Guillemot to explore a privatization or a sale to a strategic investor. Analysts say Tencent and Guillemot are probably keen to shield Ubisoft from any outside bid, wanting to retain the current management structure.
The Covid pandemic disrupted Ubisoft&rsquo;s game production, with knock-on effects on the business.&nbsp;&nbsp;New titles were delayed or cancelled, and underwhelming sales of its &ldquo;Star Wars Outlaws&rdquo; game triggered a downturn in the share price.
Last month Ubisoft delivered another blow to investor confidence, confirming that the launch of its highly anticipated &ldquo;Assassin&rsquo;s Creed Shadows&rdquo; would be delayed until February 2025. The share price sank rapidly to a decade low of 9.89 euros as brokerages lowered their outlooks for the stock. But when the potential Tencent-Guillemot alliance came to light, Ubisoft&rsquo;s share price rallied to a stable level at 13.06 euros.
A purchase of Ubisoft &ndash; valued at just over 10 billion yuan &ndash; would hardly be a stretch for China&rsquo;s biggest gaming company. Tencent&rsquo;s half-year&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0814/2024081400282.pdf">earnings</a>&nbsp;revealed that the tech giant had net cash of 71.76 billion yuan and total cash of 415.2 billion yuan in hand as of the end of June. The company generated free cash flow of 92.3 billion yuan in the first half of 2024, as its video and game businesses rebounded from a slump last year.
Over the past decade, the industry has shifted its focus from desktop games to mobile networks and cloud gaming.&nbsp;&nbsp;With its deep pockets,&nbsp;Tencent has&nbsp;been able to evolve with the market,&nbsp;building a user base of nearly 1.4 billion for WeChat and Weixin and launching some of the world&rsquo;s most profitable games, such as &ldquo;Honor of Kings&rdquo; and &ldquo;PUBG Mobile&rdquo;. The mobile and multiplayer products, with innovative and high-quality gameplay, have generated strong returns for&nbsp;Tencent.
<h4>Tencent&rsquo;s Gaming Strategy</h4>
Despite its commercial success, Tencent has not shown much interest in developing blockbuster games that involve the highest production values and costs, known in the industry as&nbsp;AAA games.&nbsp;Developers of&nbsp;China&rsquo;s first ultra-AAA game, the super hit &ldquo;Black Myth: Wukong&rdquo;,&nbsp;originally&nbsp;worked on&nbsp;Tencent&rsquo;s&nbsp;&ldquo;Dou Zhan Shen&rdquo;&nbsp;but core team members Feng Ji and Yang Qi broke away to start a new business in 2014 after disagreements with management. Their&nbsp;former boss, Tencent, still&nbsp;invested 5% in the business.
Tencent rarely acquires game developers that pursue this enhanced quality and has shown no sign of introducing a mobile version of &ldquo;Black&nbsp;Myth:&nbsp;Wukong&rdquo;.&nbsp;Aside from the technical challenge of applying a PC game to a multiplayer mobile platform, a potential clash of corporate cultures would also be a&nbsp;consideration for Tencent.
Since&nbsp;Tencent invested in Ubisoft in 2022 and forged strategic ties with&nbsp;Guillemot, the two parties have not explored any deeper&nbsp;cooperation on games. Therefore, even if Tencent joins&nbsp;Guillemot&nbsp;in defending Ubisoft, it would most likely remain a relatively passive investor, with limited impact on its share price.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Markets

Tencent May Join Forces For Ubisoft Bid

The Chinese market, which reopened on Tuesday after a weeklong public holiday, was pressured on Wednesday as domestic traders did not get the additional stimulus they had factored in. Come Thursday, things took a turn for the better as the People&#8217;s Bank of China announced measures to boost the stability of the domestic equity market.
What Happened: In a statement released on its website, the PBoC said it has decided to establish the &#8220;Securities, Funds and Insurance Companies Swap Facility,&#8221; or SFISF, to support qualified securities, funds and insurance companies to exchange bonds, stock exchange-traded funds and CSI 300 constituent stocks and other assets for high-grade liquid assets such as Treasury bonds and central bank bills from the central bank. 
The scale of operation during the first phase is 500 billion yuan ($70.7 billion) and this could be expanded further depending on the situation, the central bank said. Applications from qualified securities, funds and insurance companies will be accepted with immediate effect, it said.
The central bank clarified that the new measure is in order to implement the requirements of the Third Plenary Session of the 20th CPC Central Committee regarding &#8220;establishing a long-term mechanism to enhance the inherent stability of the capital market&#8221; and promote the healthy and stable development of the capital market.&#8221;
See Also: <a href="https://www.benzinga.com/money/best-chinese-stocks">Best Chinese Stocks</a>
Thursday&#8217;s announcement comes on top of the liquidity-boosting measures the central bank announced in late September regarding cutting the reserve requirement ratio, which is the amount of cash banks must hold as reserves, by 50 basis points freeing up about 1 trillion yuan for new lending.
The central bank hinted at the possibility of reducing it by a further 0.25-0.50% points. It also said it would lower the seven-day repo rate by 0.2 points, the interest rate on a medium-term lending facility by about 30 basis points and loan prime rates by 20-25 basis points.
Market Reacts: The Shanghai Composite Index &#8211; the key market gauge of mainland China, rallied strongly following the fresh stimulus. After opening at 3,277.69, modestly higher than the previous close of 3,258.86, the index gave back its gains in early trading and moved below the unchanged line.
Following PBoC&#8217;s announcement, the index recovered. At last check, it traded 2.92% higher at 3,353.91.
Hong Kong&#8217;s Hang Seng Index also rallied over 4%.
US-listed Stocks Rip Higher: U.S.-listed Chinese stocks listed in Hong Kong reflected the buoyancy and were sharply higher by mid-day on Thursday. Among the gainers are:
<ul>
<li>Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) gained 4.28%.</li>
<li>XPeng, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) jumped 9.50%.</li>
<li>Li Auto, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) rose 5.96%.</li>
<li>Nio, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) added 6%.</li>
<li>JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) climbed 5.63%.</li>
<li>Tencent Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) moved up 1.98%.</li>
<li>Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) moved up 2.47%.</li>
</ul>
The iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) ended Wednesday&#8217;s session down 2.36% at $51.97, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41182930/china-was-tipping-into-a-japan-style-lost-decade-of-deflation-and-stagnation-before-late-septemb">China Was Tipping Into A Japan-Style &#8216;Lost Decade&#8217; Of Deflation And Stagnation Before Late-September Stimulus Announcements, Says Legal Expert</a></li>
</ul>
Image via Shutterstock

Asia

MCHI

XPEV

Alibaba, JD.com, XPeng Soar In Hong Kong As PBOC's Fresh Stimulus To Boost Stock Market Sends Chinese Main Stock Market Gauge Up By 3%

Renowned investor Ray Dalio, founder of Bridgewater Associates, has raised concerns about the complexities of investing in China amid the <a href="https://www.benzinga.com/markets/asia/24/10/41207547/dont-bet-on-chinas-economic-stimulus-yet-as-yuan-faces-volatility-amid-us-election-jobs-data-analyst">country&#8217;s shifting economic policies</a>.
What Happened: Speaking at the Greenwich Economic Forum, Dalio highlighted the challenges posed by Beijing&#8217;s changing stance on capitalism, which has led to significant structural changes in the Chinese economy, <a href="https://www.cnbc.com/2024/10/08/ray-dalio-china-investing-is-tricky-as-beijing-turns-less-favorable-to-capitalism.html">reported</a> CNBC.
"There's something big going on that they had a debt crisis and they also had a capitalism crisis. Are they … favorable to capitalism as we knew it before? I do not believe they are in the same way," Dalio said. 
Dalio pointed out that the Chinese government aims to maintain strict control over the economy, which has impacted investor sentiment. 
The recent enthusiasm for Chinese investments was <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41227136/chinese-stocks-plunge-as-stimulus-hopes-fade-hong-kong-posts-worst-daily-decline-si">tempered when officials did not announce specific stimulus</a> measures.
Despite expectations for economic revival through policy actions like interest rate cuts, the Chinese markets have seen reduced momentum. The CSI 300 index, which had previously surged over 10%, saw its gains <a href="https://www.benzinga.com/markets/asia/24/10/41243227/chinese-stocks-plunge-as-hang-seng-drops-1-39-extending-volatile-streak-tech-giants-jd-com-alibaba-b">shrink to 5% on Tuesday</a>.
Dalio advised investors to avoid focusing on daily market fluctuations. Meanwhile, hedge funds have been increasing their investments in Chinese stocks, anticipating further stimulus. David Tepper of Appaloosa Management expressed optimism, stating he is heavily investing in China due to recent government support. 
See Also: <a href="https://www.benzinga.com/markets/equities/24/10/41220350/tesla-traders-wild-bet-on-elon-musks-company-ends-in-a-306m-lawsuit-spiral?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla Trader&#8217;s Wild Bet On Elon Musk&#8217;s Company Ends In A $306M Lawsuit Spiral</a>
Why It Matters: China&#8217;s economic landscape has been marked by volatility and rapid changes in recent months. A <a href="https://www.benzinga.com/markets/asia/24/10/41213691/fast-and-furious-rally-pushes-chinese-stocks-to-double-s-p-500-performance-year-to-date">dramatic rally</a> in Chinese equities occurred in early October, driven by aggressive monetary easing policies and government commitments to stabilize the property sector. 
This surge saw the MSCI China Index tracked by the iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) outperform other major global markets, doubling the year-to-date gains of the S&amp;P 500,&nbsp;as tracked by the&nbsp;SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
However, this optimism was short-lived, as Chinese stocks experienced a <a href="https://www.benzinga.com/markets/asia/24/10/41243227/chinese-stocks-plunge-as-hang-seng-drops-1-39-extending-volatile-streak-tech-giants-jd-com-alibaba-b">sharp selloff</a> on Wednesday, with the Hang Seng Index continuing a volatile trend across Asia-Pacific markets. The Hang Seng Index in Hong Kong dropped 1.39% to 20,635.11, following Tuesday's devastating 9.41% plunge — its worst single-day loss since the 2008 financial crisis.
Tech giants faced significant losses <a href="https://www.benzinga.com/markets/asia/24/10/41243227/chinese-stocks-plunge-as-hang-seng-drops-1-39-extending-volatile-streak-tech-giants-jd-com-alibaba-b">during the downturn on Wednesday</a>, with JD.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) plummeting 7.52% on the Hong Kong stock exchange. Alibaba Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) followed with a decline of 2.75%, while Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) lost 1.65% on HKEX. Tencent (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) also experienced a downturn, declining by 1.32%.
Dalio&#8217;s insights come at a time when investors like Michael Burry have made <a href="https://www.benzinga.com/markets/asia/24/08/40386342/big-short-fame-michael-burry-bets-big-on-china-reveals-alibaba-as-top-holding-jd-com-and-baidu-also">significant bets on Chinese stocks</a>, as seen in his hedge fund&#8217;s latest portfolio shift. The evolving economic strategies in China, including potential &#8220;beautiful deleveraging,&#8221; as Dalio previously noted, continue to shape <a href="https://www.benzinga.com/markets/asia/24/10/41157439/ray-dalio-sees-potential-for-beautiful-deleveraging-in-xi-jinpings-economic-strategy-for-china">the investment landscape</a>.
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Image via Wikimedia Commons
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

ALIBABA GROUP HOLDING LTD by Alibaba Group Holding Limited

BABAF

Ray Dalio Issues Stark Warning As Investors Get Optimistic About China Again: 'There's Something Big Going On...'

Chinese stocks experienced a sharp selloff on Wednesday, continuing a volatile trend across Asia-Pacific markets. The Hang Seng Index (HSI) in Hong Kong dropped 1.39% to 20,635.11, following Tuesday&#8217;s devastating 9.41% plunge—its worst single-day <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41227136/chinese-stocks-plunge-as-stimulus-hopes-fade-hong-kong-posts-worst-daily-decline-si">loss since the 2008 financial crisis</a>.
What Happened: The mainland CSI 300 index also suffered, dropping 5.39%. This sharp reversal comes after weeks of robust performance that had positioned Chinese stocks among the top global performers year-to-date.
Tech giants bore the brunt of the downturn:
<ul>
<li>JD.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) plummeted 7.52% on the Hong Kong stock exchange. </li>
<li>Alibaba (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BABAF#OTC">BABAF</a>) fell 2.78%</li>
<li>Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) lost 1.65% on HKEX</li>
<li>Tencent (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) declined 1.32%</li>
</ul>
Analysts attribute the selloff to investors locking in profits and growing disappointment over the <a href="https://www.benzinga.com/markets/asia/24/10/41223117/alibaba-tencent-jd-com-and-baidu-slide-over-8-as-chinas-28b-stimulus-boost-misses-the-mark">lack of aggressive fiscal stimulus</a> from Beijing. 
The contrast was stark in Japan, where the Nikkei 225 climbed 0.6%, highlighting the divergent market sentiments across the region.
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Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Chinese Stocks Plunge As Hang Seng Drops 1.39%, Extending Volatile Streak — Tech Giants JD.com, Alibaba, Baidu Tread Red Waters

The Chinese government's announcement of a 200 billion yuan ($28 billion) stimulus aimed at local investment projects fell short of market expectations, triggering a <a href="https://www.benzinga.com/markets/24/10/41207862/stimulus-fueled-china-stock-rally-set-to-fizzle">sharp sell-off in major tech stocks</a>.
What Happened: The National Development and Reform Commission (NDRC), China&#8217;s top planning agency, disclosed the allocation at a press conference on Tuesday, <a href="https://edition.cnn.com/2024/10/08/business/china-economy-ndrc-hnk-intl/index.html">reported</a> CNN. 
&#8220;We are confident in achieving the annual economic and social development goals and tasks, and in maintaining sustained, stable and healthy economic and social development,&#8221; said Zheng Shanjie, the commission&#8217;s chairman, according to the report.
China had set a 5% growth target in March. However, recent economic data has been concerning, raising fears that the target might not be met. The country&#8217;s economy is currently grappling with challenges such as a property crisis, weak consumer spending, and high youth unemployment.
To assist local governments dealing with significant debt burdens, Beijing will provide 100 billion yuan ($14 billion) from the central government&#8217;s budget, in addition to an extra 100 billion yuan for investment projects, Zheng stated.
Mainland China's CSI 300 surged over 10% at the open on Tuesday following its return from the Golden Week holiday, but the index pared back gains to close 5.93% higher at 4,256.1.
In Hong Kong, the Hang Seng Index initially plunged more than 10%, before moderating to a 9% loss by its final hour of trading.
Key Chinese tech stocks were hit hard:
<ul>
<li>Alibaba Group Holding Ltd &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) fell 8.93% in pre-market trading.</li>
<li>Tencent Holdings Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) dropped 8.32% to HK$ 438.60.</li>
<li>JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) saw a sharp decline of 11.32% in pre-market trading</li>
<li>Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) slipped 9.10% in pre-market trading.</li>
</ul>
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Why It Matters: The Chinese economy has been facing significant challenges, with the government implementing various measures to stimulate growth. In a recent move, the People&#8217;s Bank of China <a href="https://www.bloomberg.com/news/articles/2024-09-24/china-cuts-bank-reserve-ratio-to-boost-economy-amid-property-woes">cut one of its main interest rates</a> and reduced the amount of cash banks are required to hold in reserve. 
The government also announced cash handouts to disadvantaged citizens and subsidies for recent graduates struggling to find employment.
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Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors

Alibaba, Tencent, JD.com And Baidu Slide Over 8% As China's $28B Stimulus Boost Misses The Mark

Chinese equities have staged a dramatic comeback in the past few weeks on the back of policy stimulus, with the MSCI China Index, tracked by the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>), surging over 35% <a href="https://www.benzinga.com/topic/china">between Sept. 24 and Oct. 7. </a>
This &#8220;fast and furious&#8221; rally, as described by Bank of America analysts Winnie Wu and Willie Chan, outpaced the performance of other major markets globally and more than doubled the year-to-date gains of the S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
The rally has been driven by a series of aggressive monetary easing policies unveiled by Chinese authorities, alongside renewed government commitments to stabilize the country&#8217;s troubled property sector.
<h1 class="wp-block-heading">Year-To-Date Performance: MSCI China Doubles S&amp;P 500</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="455" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-1024x455.png" alt="" class="wp-image-583894" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-1024x455.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-300x133.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-768x342.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-1536x683.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Chart:<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent100724&amp;t=be2bearmibe3na1"> Benzinga Pro</a></figcaption></figure>
<h1 class="wp-block-heading">A $2 Trillion Market Surge</h1>
From Sept. 23 to 30, the MSCI China Index added nearly $2 trillion in market capitalization. Some of the largest beneficiaries were blue-chip companies like Kweichow Moutai, which jumped 39% (adding $88 billion in market cap), Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), which climbed 15% (adding $70 billion) and Alibaba Group Holding Ltd. &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), which surged 27%, increasing its market value by $58 billion.
This rapid market appreciation reflects growing optimism among investors that China's policymakers are taking serious steps to address the country's economic challenges, including deflationary pressures, a property market downturn and mounting local government debt.
<h1 class="wp-block-heading">Key Stimulus Measures Fuel The Rally</h1>
The rally was sparked by a series of unexpected policy announcements starting on Sept. 23. That day, the People's Bank of China (PBoC) surprised markets by cutting its 14-day reverse repurchase rate by 10 basis points to 1.85%, injecting approximately $10.6 billion (74.5 billion yuan) into the banking system.
The following day, the PBoC Governor Pan Gongsheng announced a more substantial measure: the central bank would cut the reserve requirement ratio by 50 basis points, injecting about $142.5 billion (one trillion yuan) into the financial system. In addition, the seven-day repo rate was reduced by 20 basis points, and the central bank pledged to lower benchmark loan prime rates and existing mortgage rates by around 50 basis points, potentially reducing household interest payments by about $21 billion (150 billion yuan).
Further easing came on Sept. 25, when the PBoC lowered its one-year medium-term lending facility (MLF) rate by 30 basis points, followed by fiscal pledges to inject capital into state-owned banks. 
Last but not least, the PBoC ordered commercial banks to reduce interest rates on existing mortgages, with rates no less than 30 basis points below the Loan Prime Rate before Oct. 31.
<h1 class="wp-block-heading">Chinese Equity ETFs Post Massive Gains</h1>
These moves have propelled Chinese equity ETFs to outperform the S&amp;P 500 and other global benchmarks by a significant margin. From Sept. 24 to Oct. 7, several China-focused ETFs posted eye-whopping gains:
<ul>
<li>Invesco China Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQQQ#NYSE">CQQQ</a>): +52%</li>
<li>iShares MSCI China A ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNYA#NYSE">CNYA</a>): +48%</li>
<li>XTrackers Harvest CSI 300 China A-Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASHR#NYSE">ASHR</a>): +47%</li>
<li>WisdomTree China ex-State-Owned Enterprises Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CXSE#NASDAQ">CXSE</a>): +43%</li>
<li>KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>): +40%</li>
<li>SPDR S&amp;P China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GXC#NYSE">GXC</a>): +38%</li>
<li>Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>): +36%</li>
<li>iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>): +32%</li>
</ul>
<h1 class="wp-block-heading">Caution Ahead: Potential for Pullbacks</h1>
While the rally has been robust, analysts at Bank of America advise caution.
&#8220;More fiscal stimulus&nbsp;to stabilize the property market&nbsp;and&nbsp;restructure local government debts,&nbsp;and structural reforms&nbsp;to address&nbsp;the&nbsp;over-capacity/deflation&nbsp;issues&nbsp;are&nbsp;needed to turn&nbsp;around the economy,&#8221; they wrote.
In their report, analysts warn the current &#8220;buy everything&#8221; stage may soon end, particularly if no further positive catalysts materialize.
High-beta consumer, property and broker stocks, which have rallied sharply, could be the first to experience profit-taking. However, the analysts suggest long-term investors could view any potential pullbacks as buying opportunities, particularly in sectors like large-cap internet stocks and high-yield state-owned enterprises (SOEs), which they consider less volatile.
For the fourth quarter of 2024, Bank of America remains constructive on several sectors, including internet (media, online retail), insurance, and health care, particularly in life sciences and biotech, which delivered strong performance in the third quarter.
They are cautious about brokerage stocks after the strong rally and have downgraded utilities (gas, water) due to earnings downgrades and unattractive valuations. Additionally, they remain bearish on the property, auto, construction materials and chemicals sectors, as they believe a fundamental recovery in these areas will take more time.
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Photo: Shutterstock

Large Cap

Emerging Market ETFs

Econ #s

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ASHR

CNYA

CQQQ

CXSE

KWEB

PowerShares Golden Dragon Halter USX China Portfolio

'Fast And Furious Rally' Pushes Chinese Stocks To Double S&P 500 Performance Year To Date

TTWO

Tencent, Guillemot Family Are Said To Weigh Buyout Of Ubisoft

Amid China&#8217;s recent economic stimulus efforts, Citi has identified three U.S.-listed Chinese stocks as potential winners. The measures, introduced last month, aim to rejuvenate the economy and enhance market and consumer confidence.
What Happened: Citi has pinpointed three Chinese stocks listed in the U.S. as potential beneficiaries of China&#8217;s recent economic stimulus measures, CNBC <a href="https://www.cnbc.com/2024/10/03/citi-names-3-us-traded-stocks-set-to-benefit-chinas-stimulus-program.html">reported</a> on Thursday. Last month, China rolled out several policies aimed at revitalizing its economy and boosting market and consumer confidence.
These efforts have already led to significant gains in Chinese internet stocks, with the KraneShares China Internet ETF rising by 45%. Despite these gains, Citi analysts, led by Alicia Yap, believe the market has not fully accounted for the potential improvements in macroeconomic conditions and earnings growth.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41134194/odds-of-tim-walz-winning-the-vp-debate-drop-on-polymarket-as-bettors-favor-jd-vance-harris?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Odds Of Tim Walz Winning The VP Debate Drop On Polymarket As Bettors Favor JD Vance — Harris Maintains Lead Over Trump</a>
The Wall Street bank highlighted Tencent (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), Trip.com Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCOM#NASDAQ">TCOM</a>) and Meituan (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MPNGY#OTC">MPNGY</a>) as top picks to benefit from the stimulus. Tencent, with its diverse business portfolio, stands to gain from increased consumer spending and online activity. Trip.com Group is expected to benefit from a resurgence in China&#8217;s travel industry, while Meituan could see growth in consumer spending on food delivery and local services.
Why It Matters: The recent stimulus measures in China have sparked optimism in the markets. Chinese stocks experienced a rebound following the <a href="https://www.benzinga.com/news/24/09/41097864/china-stocks-jump-as-stimulus-optimism-mounts-whats-going-on">announcement of policies</a> allowing homeowners to refinance mortgages. This move is part of a broader strategy to support the struggling economy.
Despite the positive short-term impact, there are concerns about the long-term effectiveness of these measures. Experts hold skepticism about the ability of these stimulus programs to address <a href="https://www.benzinga.com/opinion/24/10/41148148/why-chasing-the-china-rally-could-cost-you-everything">China&#8217;s structural economic issues</a>, particularly in the real estate sector. Nevertheless, the immediate liquidity injections have provided a boost to the markets, with the CSI 300 index rallying by nearly 16% last week.
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

Analyst Color

MPNGY

TCOM

These US-Listed Chinese Stocks Set To Surge Amid Beijing's New Stimulus Plan: Citi

Epic Games CEO Tim Sweeney declared the company "financially sound" during a presentation at <a href="https://www.benzinga.com/general/gaming">Unreal Fest 2024. </a>
This statement comes after a tumultuous period marked by significant layoffs and strategic divestitures.
<h3 class="wp-block-heading">The Layoffs And Strategic Shifts</h3>
In September 2023, Tencent ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) backed Epic Games made headlines when it announced a massive reduction in its workforce, laying off approximately 830 employees—about 16% of its total staff.
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Alongside the layoffs, Epic divested its music service platform Bandcamp and spun off the majority of SuperAwesome, a child-safe technology company. These moves resulted in the exit of around 250 additional staff members.
At the time of the layoffs, Sweeney said that Epic had been "spending way more money than we earn," pointing out the need for a "major structural change to our economics." 
Furthermore, he noted that the explosive growth of Fortnite — which initially funded the company's expansion — had transitioned to a model with lower profit margins due to revenue-sharing with creators.
<h3 class="wp-block-heading">A Year Of Rebuilding And Record Success</h3>
Fast-forward to Unreal Fest 2024, and Sweeney presented a much more optimistic view of Epic's state.
&#8220;I&#8217;m happy to tell you now that the company is financially sound, and that Fortnite and the Epic Games Store have hit new records in concurrency and success,&#8221; he said, <a href="https://www.gamesindustry.biz/epic-games-ceo-says-company-is-now-financially-sound">according</a> to GamesIndustry.biz-
And added: "We spent the last year rebuilding and really executing solidly on all fronts." 
Fortnite reached 110 million monthly active users (MAUs) during the recent holiday season. This milestone shows the game&#8217;s lasting appeal even seven years post-launch, marking a significant increase from the 78.3 million MAUs reported in August 2018. 
While Epic Games remains in a competitive struggle with Steam for dominance in the PC gaming market, the Epic Games Store reported 70 million MAUs in the last month. However, the store continues to operate at a loss, facing challenges in converting its growing user base into profitability.
<h3 class="wp-block-heading">Legal Challenges And Financial Implications</h3>
Meanwhile, Epic Games is still navigating a complex legal landscape. Sweeney has openly stated that the company&#8217;s ongoing litigation against <a href="https://www.benzinga.com/general/gaming/24/08/40423388/epic-games-mobile-store-goes-live-in-europe-ceo-says-apple-had-to-be-challenged">tech giants like Apple </a>and Google has cost Epic around $1 billion. 
The legal battles primarily stem from Epic&#8217;s attempt to create a competing app store for mobile devices, which has led to a series of costly disputes.
In a fresh move, Epic has initiated another lawsuit against Samsung and Google regarding a feature known as Auto Blocker, which complicates the installation of Epic Games on mobile devices. 
Read Next:
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</ul>
Image credits: Shutterstock.

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Shaquille O'Neal could be the latest legend to join Fortnite, putting the NBA star on the same level of <a href="https://www.benzinga.com/top-stories/24/08/40322467/disney-characters-join-fortnite-in-latest-collaboration-with-epic-games">movie characters and superheroes.</a>
What Happened: Internet leaks predict that O'Neal (aka Shaq) could get the Fortnite Icon series treatment in the<a href="https://www.benzinga.com/topic/fortnite"> popular online video game </a>with the potential of skins and accessories coming Saturday, Oct. 4.
Leakers, like <a href="https://x.com/ShiinaBR/status/1841124523166290311">ShiinaBR</a>, have pointed to Fortnite data files showing upcoming skins and themes based on O'Neal and the movie characters Billy from the Saw franchise and Leatherface from the Texas Chainsaw Massacre franchise.
O&#8217;Neal, one of the best-known National Basketball Association players of all time, earned a long list of nicknames over the years. In addition to &#8220;Shaq,&#8221; there could be multiple variations of O'Neal that appear in the game, including Diesel, Shaq Fu, Superman and DJ Diesel, his musician persona.
Performing as DJ Diesel, O'Neal may have teased the collaboration with Fortnite, sharing a video at a concert that showed a potential virtual version of himself in the game. 
O'Neal also captioned a TikTok video of his performance with "Toronto…last night was EPIC," putting EPIC in all caps as a potential play on Epic Games, along with a winking face emoji.
O'Neal's collaboration with Fortnite could include skins, accessories, sound clips and a potential musical performance as DJ Diesel, as <a href="https://gamerant.com/fortnite-leak-nba-legend-shaquille-shaq-oneal/">reported </a>by Game Rant. 
Epic Games and O'Neal have not confirmed anything yet, leaving gamers to decipher the leaks and hints from the former NBA's stars social media posts.
Did You Know?
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<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent100124">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
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Why It's Important: Fortnite is known for its partnerships and collaborations that often include skins and accessories that can be bought by gamers.
This freemium model of a free game with in-game purchases has helped Fortnite be one of the most successful games for parent Epic Games, which counts Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) as a 40% owner.
Through <a href="https://www.benzinga.com/news/earnings/24/02/36993564/disney-invests-1-5b-in-fortnite-owner-epic-games-in-biggest-ever-gaming-entry-posts-q1-earnings-bea">an investment by</a> The Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) in Epic Games, more Star Wars, Marvel and Pixar characters have made their way into Fortnite in recent months.
Several musicians have appeared to perform music in Fortnite or as purchasable skins including Marshmello, Travis Scott, Ariana Grande and Metallica.
O'Neal is not a stranger to video games with multiple "Shaq Fu" games previously released and his appearance in various NBA games.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/general/sports/24/09/40866143/shaquille-oneal-reflects-on-divorce-fatherhood-and-personal-accountability-i-was-lost-76-000-squar">Shaquille O&#8217;Neal Reflects On Divorce, Fatherhood And Personal Accountability: &#8216;I Was Lost. 76,000 Square Foot House By Yourself&#8217;</a></li>
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Image: Shutterstock

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