The increasing desire to connect with others and share opinions in today’s era of remote connectivity has bolstered the user bases of Chinese social media players Weibo (NASDAQ:WB) and Tencent Holdings (OTC:TCEHY). However, given Chinese regulators’ ongoing anti-monopolistic clampdown to curb the power of internet giants, these two stocks may witness a pullback in the near-term. So, let’s discuss whether either of these two stocks is a good investment option now.Weibo Corporation (WB) and Tencent Holdings Limited. (TCEHY) are two popular social media and advertising platforms that in China. Formerly known as T.CN Corporation, WB operates through its advertising and marketing services and value-added services segments. TCEHY operates through VAS, online advertising, FinTech and business services, and other segments.
Higher mobile penetration and increasing use of online solutions by individuals and businesses across China continue to leverage the business of Chinese social media players WB and TCEHY. In this fast-evolving environment, these two companies have managed to grow their user bases significantly by stepping up their investments and creating significant social values through innovations.
Although WB and TCEHY have been capitalizing on China’s changing socio-economic profile, they look less appealing now given that Chinese authorities have doubled down on their enforcement of antitrust rules to rein in the growing influence of big tech companies.