Yahoo Finance These 5 Temasek-Owned Growth Stocks Have Rebounded: Can Their Share Price Run Continue?
Growth stocks have been badly hit this year by surging inflation and rising interest rates, but it looks like there may be a sliver of hope.
Investor pessimism hit rock bottom a few months ago and appears to be reversing.
And October’s US inflation data, coming in at 7.7%, was also lower than what analysts had projected.
This data boosted confidence that the US Central Bank will slow its rate hikes and that inflation can be brought under control next year.
For Temasek Holdings, its portfolio of growth stocks is also enjoying a breath of fresh air.
The investment firm has seen several of its growth companies rebounding sharply from their lows and posting encouraging financial numbers.
Here are five that may see their share prices rising further.
Tencent Holdings Ltd (HKSE: 0700)
Tencent is a Chinese technology company founded in 1998 that offers games, digital content, advertising services, and other financial technology (fintech) services to its customers.
Shares of the fintech company have rebounded close to 50% from their 52-week low of HK$198.60.
Tencent just announced its latest fiscal 2022’s third quarter (3Q2022) earnings.
Total revenue dipped by 2% year on year to RMB 140.1 billion while operating profit fell 3% year on year to RMB 51.6 billion.
However, net profit inched up 1% year on year to RMB 39.9 billion.
International gaming revenue increased by 3% year on year to RMB 11.7 billion from the launch of Tower of Fantasy, assisted by an expanded game portfolio at Miniclip, but was offset by lower revenue from its flagship PUBG Mobile.
Domestic game revenue, however, fell by 7% year on year due to a lower number of paying users.
The company also saw a slight 2.8% year on year dip in value-added service subscriptions to 228.7 million.
In addition, Tencent will also distribute most of its stake in food delivery company Meituan (HKSE: 3690) as a dividend-in-specie.
Visa (NYSE: V)
Visa is a financial services company that facilities electronic funds transfer through its network of co-branded debit and credit cards.
Shares of the financial company have rebounded by 20% from its low of US$174.60.
Visa reported a strong set of earnings for its fiscal 2022 (FY2022) ending 30 September 2022.
Revenue jumped 22% year on year to US$29.3 billion, led by continued strength in consumer payments coupled with a recovery in travel spending as borders reopened.
Net profit climbed by 21% year on year to US$15 billion.
Total payments volume jumped by 15% year on year as processed transactions increased by 17% year on year for FY2022.
The company continued to churn out a strong free cash flow of US$17.9 billion, up 23.1% year on year from US$14.5 billion a year ago.
Visa ended the third quarter of FY2022 with four billion credit and debit cards in issue.
PayPal (NASDAQ: PYPL)
PayPal is also a fintech company that operates a platform to support online money transfers between merchants and customers.
Shares of PayPal have rebounded by 28.8% to US$87.04 since hitting its 52-week low of US$67.58.
The company posted a pleasing set of earnings for 3Q2022.
Revenue grew 11% year on year to US$6.85 billion, with earnings per share rising to US$1.15 from US$0.92 a year ago.
Total payment volume also rose 9% year on year to US$337 billion.
Most importantly, free cash flow climbed 37% year on year to US$1.8 billion.
PayPal expects to add a total of eight to 10 million net new active accounts for FY2022 and is working with Apple (NASDAQ: AAPL) to enhance its offerings.
Airbnb (NASDAQ: ABNB)
Airbnb operates a platform for customers to book short-term homestays and acts as a broker between the host and client, charging a fee for each transaction.
Its platform currently boasts more than four million hosts.
Airbnb’s share price has bounced off its 52-week low of US$86.71 and is trading around 20% higher.
The accommodation booking platform saw its revenue surge 29% year on year to US$2.9 billion, buoyed by continued strong travel demand.
Net profit surged 46% year on year to US$1.2 billion.
The number of bookings increased by 25% year on year to 99.7 million with gross booking value improving 31% year on year to US$15.6 billion.
Management plans to introduce a new and easy way this week for millions of people to host their homes on Airbnb’s platform and will announce more details soon.
Meituan (HKSE: 3690)
Meituan is a food delivery and shopping platform that offers a range of products and services including entertainment and travel.
Shares of the company have surged by 56.8% since hitting a 52-week low of HK$103.50.
Meituan reported a 16.4% year on year increase in revenue to RMB 50.9 billion for the second quarter of 2022.
However, it incurred a net loss of RMB 1.1 billion which was 66.7% lower than the prior year’s RMB 3.3 billion.
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Disclaimer: Royston Yang owns shares of Apple, Visa and PayPal.
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