Premium: Double blow for Naspers – Tencent’s loses exponential status; Missfresh bust

CLICK HERE TO LISTEN TO YOUR EARLY MORNING UPDATE ON NEWS THAT MATTERS: Market holding above 200 day MA (just); Fed Minutes; Bad Chinese news for Naspers on Tencent, Food Delivery; Sibanye smacked despite Rand weakness.Some rough news this morning for owners of the most heavily weighted stock in the JSE indices. Although things are not quite so extreme since Naspers's cap on selling shares in Tencent was lifted, its stake in the Chinese internet company remains the most important determinant of its valuation. So Naspers co-owners should pay attention to the news (see below) that the toxic cocktail of Beijing's attack on business and Covid it really hurting Tencent. .___STEADY_PAYWALL___.For the first time since its listing in on the Hong Kong Stock Exchange in 2004, TenCent reported a revenue reverse – its June quarter's income fell 3% compared with the same three months of 2021. Ironically, traders expected even worse with the TenCent share price rising this morning. .Share prices of exponential companies enjoy lofty ratings because spreadsheets compiled by research analysts bake-in continued expansion. When that changes, so do the formulas – and pretty soon the stock price returns to much lower valuations based on metrics applied to mature businesses. Witness Netflix's fall from $600 to $200 a share..Another blow for Naspers fans is news that China's biggest food delivery company, Missfresh, has gone bust. Yesterday's news wasn't that big a surprise as the company's shares had lost 99% of their value since listing in June last year. And Missfresh delivered groceries rather than fast food. Even so, it will remind investors that food delivery is one of Naspers' big bets in its attempt to repeat the TenCent bonanza. And that bet looked dodgy even before the Missfresh demise. .More for you to read today: .Tencent Posts First Revenue Drop Since 2004 IPO. Economic woes weigh on Chinese social-media giant's online-ad revenue, while regulatory scrutiny hits videogame business. From iPhones to AirPods to MacBooks: The Apple Gadgets You Should—and Shouldn't—Buy Right Now. It's a bad time to buy a fancy iPhone, the AirPods Pro and really any Apple Watch. But it's a good time for a MacBook Air. Our columnist's annual Do/Don't Buy list is here.When Bill Gates Dines with Politicians……taxpayers beware!Reagan's Lessons in Economic Leadership. Phil Gramm writes how RR put the country's interests ahead of his own more than once: "We could use a leader like that now." .NB FOR YOUR WALL STREET JOURNAL ACCESS….As a Premium subscriber you are entitled to full membership of wsj.com (normal price $29 a month). Be sure to action your access through the Premium link on the BizNews website. Because of The Wall Street Journal's credential requirements, be sure to create a password which has at least 8 characters and includes at least one letter and one number – NB it MAY NOT contain any special characters (ie #, !, @ etc). To maintain access to WSJ.com, you MUST enter our partner's website via Biznews Premium at least once a month. A final PS, if you had previously signed up for WSJ you'll need to clear the cookies from your device. Our helpdesk can assist – support@biznews.com.

Premium: Double blow for Naspers – Tencent’s loses exponential status; Missfresh bust

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