Tencent beats estimates | Target and Lowe's earnings | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for August 19th in 3:12 minutes. ð¤ Data is an invaluable tool for an investor, but only when you know what to concentrate on. Thatâs what our [Strategies To Supercharge Your Investments]( event with Vantage FX is all about: helping you sort the data wheat from the data chaff. [Get your free ticket]( Today's big stories - Chinaâs Tencent reported better-than-expected earnings, but sales grew at their slowest pace in two years
- Our analyst digs into another tactical asset allocation strategy thatâs delivered mean returns using momentum and diversification â [Read Now](
- US retail giants Loweâs and Target also scored better-than-expected results, and Loweâs stock shot up Tencenter Stage [Tencenter Stage] Whatâs Going On Here? Tense times for Tencent: the Chinese internet giant stepped into the spotlight on Wednesday and delivered fluent earnings â but it stumbled when it came to sales growth. What Does This Mean? Tencentâs revenue was up [20%]( last quarter compared to the same time last year â not bad, but still its smallest rise since 2019, with the Chinese governmentâs expanding tech [crackdown]( likely hitting Tencentâs mobile gaming empire. A $3 billion gain on its investment portfolio meant profit nevertheless grew by a better-than-expected 29%. Come its next set of quarterly results, however, Tencent might be announcing investment losses. The company is a big backer of Chinese for-profit education startups like Yuanfudao and VIPKid â and a radical [overhaul]( of the industry last month banned such firms from, er, making a profit. Not only is that likely to undercut their valuations, but Tencent may now be stuck with these unattractive unlisted shares: with Chinaâs new rules also banning such companies from â[going public](â, its only way out is to find some other sucker private investor to sell them to. Why Should I Care? For markets: Tencent none the richer.
Tencentâs own share price is down more than 40% from the all-time highs it hit in February. While the company isnât being specifically targeted, its outsized influence in the modern Chinese economy has left it vulnerable to a government crackdown thatâs rapidly expanded to cover data security and online content. Worried investors [around the world]( have been selling the companyâs stock as a result. The bigger picture: Thereâs a new king in town.
With tens of billions of dollars knocked off Tencentâs market capitalization, itâs no longer Asiaâs most valuable company: that crown now belongs to TSMC ([tweet this](). The worldâs largest contract manufacturer of microchips has been reporting bumper [profit]( recently thanks to the global chip shortage, and investors have sent the Apple supplierâs stock up accordingly. You may also like: [The shaky legal vehicles that could bring down Chinaâs stock market.]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Tencenter Stage&utm_campaign=daily-global-19-08-2021&utm_source=email) 2. Analyst Take Tactical Asset Allocation: Diversifying Your Portfolio âTactical asset allocationâ actively adjusts a portfolio to [target market trends](, aiming to maximize returns while minimizing risks. But there are thousands of tactical asset allocation strategies out there: [some good](, some not so good. Enter Composite Dual Momentum, another of the best-performing such strategies [over the past 50 years](. Itâs generated an impressive average annual return of 12%, thanks to its focus on simultaneously keeping a portfolio diversified and [avoiding large investment drawdowns](. So thatâs todayâs Insight: the Composite Dual Momentum strategy explained, and [how you can easily implement]( it using exchange-traded funds. [Read or listen to the Insight here]( Sponsored by InvestEngine Take that, taxman A lower tax bill means more cash in your back pocket. Itâs that simple. With [InvestEngine](, you can [build your own ISA portfolio]( thatâs tax-free and zero-commission: [no portfolio fees, no trading fees, and no ISA fees](. Youâll choose from a range of handpicked ETFs to construct a portfolio that suits you. And once youâre set up, youâll be able to rebalance that portfolio â and add funds â in just a few clicks. You only need £100 to get started â and right now, youâll [even get a £50 welcome bonus](. Take control of your tax-free investing: [visit InvestEngine today](. [Get Started]( With investing, your capital is at risk. Welcome bonus terms and conditions apply, subject to minimum investment. Investengine (UK) Limited is Authorized and Regulated by the Financial Conduct Authority FRN [801128] Bullseye [Bullseye] Whatâs Going On Here? American retailers Target and Loweâs both issued quarterly earnings on Wednesday that hit the spot â but only one company was left feeling like a big shot. What Does This Mean? Targetâs revenue rose 9.5% last quarter compared to the same period in 2020, driven by strong foot traffic in stores and a boost in back-to-school (rather than back-to-screen) spending. But investors still werenât happy, sending Targetâs stock down almost 2%: the chainâs all-important online sales grew âonlyâ 10%, versus a pandemic-fueled 195% this time last year. Home improvement retailer Loweâs, meanwhile, posted a 1.6% drop in same-store sales compared to the second quarter of 2020, when the DIY market was in full swing with people stuck at home. Looking forward, however, Loweâs increased its sales forecast for the rest of the year by 7%. Investors bought the story and sent the companyâs shares up 10% in response, realizing that they may have been too hasty in lumping in Loweâs with rival Home Depot [on Tuesday](. Why Should I Care? For markets: More arrows in the quiver?
Targetâs share price is up around 40% so far this year, compared to Loweâs 25%. Companies like the latter were star stocks in 2020, thanks to all those locked-down consumers confined to homes in need of a lick of paint. But with the great economic reopening now well under way, investors are questioning whether they can continue to deliver. Targetâs in another boat entirely: its stores sell just about everything under the sun, meaning itâs more likely to benefit from people getting out and about again. The bigger picture: Ready, aim, buy.
Both Target and Loweâs unveiled new share buyback programs on Wednesday, worth $15 billion and $9 billion respectively. Thatâs great news for investors: a company buying its own shares reduces overall market supply, meaning each remaining share represents a greater portion of ownership. Assuming demand is constant, this provides an immediate boost to the company's share price â and to investors' portfolios. You might also like: [Should you be buying or avoiding retail stocks right now?]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
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