HOW TO PLAY IT
Tencent Holdings owns the largest online social media platform in China. Wechat and QQ, with 938 million and 861 million monthly active users, respectively, are the two most important platforms it operates there. And those users love games. Mobile and PC games contributed about 54% of Tencent’s total revenue—it has about 45% market share in China’s online game industry—in the first quarter of 2017. Tencent also provides online advertising to its users, which contributes about 15% of revenues. Growing revenues from gaming and online advertising are a great reason to own this Chinese juggernaut. Jim Oberweis is president of Oberweis Asset Management.