David Fuller and Eoin Treacy's Comment of the Day
Category - General

    Tencent Drops After Warning Spending to Weigh on Profit Margins

    This article by Lulu Yilun Chen for Bloomberg may be of interest to subscribers. Here is a section:

    Tencent’s business revolves largely around its vast social networks WeChat and QQ, the twin platforms through which more than a billion people consume games, news and online entertainment while paying for a plethora of real-world services. Chief Executive Officer Ma Huateng is now angling to grab a larger slice of an advertising pie dominated by Alibaba Group Holding Ltd., while investing in new areas such as financial, retail and computing services.

    “Tencent needs to invest in new business, it would help the company build a better ecosystem infrastructure to support growth, but it will hurt margins in the short term,” said Benjamin Wu, an analyst at Shanghai-based consultancy Pacific Epoch.

    Analysts at Credit Suisse Group AG and Citigroup Inc. lowered their earnings estimates for Tencent after the results.

    Tencent’s quarterly profit included gains in the quarter of 7.9 billion-yuan thanks mainly to the initial public offerings of Sea Ltd., Sogou Inc. and Yixin Group Ltd. Those are just three of the 600 companies the company has invested in.

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    A Dangerous Cyberattack On A Petrochemical Plant Could Be The First Of Many

    This article from futurism may be of interest to subscribers. Here is a section:

    You probably didn’t hear about it at the time, but in August 2017, there was an attack on a petrochemical plant in Saudi Arabia. It was meant to cause a cascading explosion, experts determined. The only reason it didn’t (and that you didn’t already hear about it) is because there was a mistake in the assailant’s code.

    This may feel far away, but such an attack could have easily happened more locally. Russians are hacking the U.S. electric grid. The greatest fear is that they are able to access American nuclear plants, which could wreak devastation rarely seen on some of the country’s most populated areas.

    A new kind of attack has made its way into the world. And, frankly, it’s terrifying.

    Experts are learning a lot from this foiled attack in Saudi Arabia. The New York Times reports that the attack required a level of sophistication that shows the attackers had government backing, though the individual hackers and the country backing them are still unknown.

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