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Bear of the Day: Tencent (TCEHY)

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Tencent Holdings (TCEHY - Free Report) is the giant Chinese Internet portal which provides mobile, telecom, entertainment, social media and financial services, and monetizes most of these with online advertising.
 
The stock has slipped to a Zacks #5 Rank because analysts took EPS estimates down for this year and next as trouble in China's economy begins to surface.
 
Here's a look at Tencent's amazing growth projections currently...
 
 
So why did it fall to the cellar of the Zacks Rank?
 
Because analysts lowered 2018 EPS projections 7% from $1.38 to $1.28 in the last 60 days.
 
And 2019 estimates were cut 10% from $1.85 to $1.65.
 
I like this company and its dominance in China Internet. But I like Alibaba (BABA - Free Report) better.
 
Both are $450 billion behemoths of Chinese consumer culture. So if I can only own one, I pick BABA.
 
We'll see if that changes after their report on Thursday.
 
Disclosure: I own BABA shares for the Zacks TAZR Trader portfolio.
 
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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
 



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