Stock analysts give their 2021 outlook on Tencent and Alibaba

Key Points
  • Tencent and Alibaba, two of China's largest tech companies by market capitalization, have seen their shares rally in 2020.
  • Analysts say there's further upside in the stocks, but both companies will face a number of headwinds in the coming year.
Chairman of Alibaba Group Holding Ltd. Jack Ma at the Viva Technology show in Paris, France.
Chesnot | Getty Images News | Getty Images

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GUANGZHOU, China — China's two largest tech firms by market capitalization, Tencent and Alibaba, have seen their shares rally in 2020. Analysts say there will be further upside next year.

Still, both companies will face a number of headwinds, including a tougher stance from China's regulators on the country's tech giants.

Already Tencent shares are up 52% so far this year, while Alibaba's Hong Kong-listed stock has risen 20% year-to-date and its U.S.-listed shares surged about 22.7% in the same period.

But it's not too late to put your money in them, say investment analysts who have raised their price targets for both stocks.

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