When one thinks about the big tech trends heading into the 2020s, several come to mind. The rise of cloud computing. Social media and digital advertising taking share from traditional media. E-commerce taking share from brick-and-mortar retail. The war on cash and the digitization of payments. Mobile and streaming video games. The rise of the Chinese middle class.
One company at the nexus of all these exciting technology trends today is Chinese internet giant Tencent (OTC: TCEHY). Yet despite Tencent's superior positioning in the Chinese consumer economy, the stock has underwhelmed other Chinese tech firms over the past year and still trades below its all-time highs set back in early 2018.
Yet Tencent is not my top pick to buy and hold through the 2020s. Rather, the company in mind is a stock that gives investors exposure to the upside of Tencent, but at a massive discount to buying Tencent shares directly.