Payments and AI Deals Push Tencent, Mastercard Stocks Higher

The CE 100 Index outpaced all benchmarks, with a big boost from the Be Well segment, where a key component got a thumbs up from famed value investor Warren Buffett.

The overall index gathered 2.2%, as most pillars were higher, with the exception of the Move segment, down 0.2%, and the Shop group, dipping 0.6%.

UnitedHealth Group’s 21.2% surge led the Be Well components 5.5% higher through the week. Buffett’s Berkshire Hathaway disclosed a 5 million share stake in the firm, worth about $1.6 billion.

“The move by Berkshire represents a big vote of confidence in UNH and likely could provide a near-term trading floor for most of the MCO [managed care organization] space and, given Berkshire’s investment track record, could serve as a near-term bottom and rallying point for other investors that the space is safe to invest in again,” George Hill, a health-care analyst at Deutsche Bank, said in a note, as reported by CNBC on Friday.

Payment names were 3.2% higher. Shares of Tencent gained 15.5% as artificial intelligence initiatives have helped boost key segments such as games. Revenues gained 15% to a new record of nearly 185 billion yuan. Revenues from domestic games were 17% higher. Marketing services sales were 20% higher. Music subscription revenue increased 17% year over year, supported by growth in average revenue per user and subscribers, the company said in its filings.

PayPal’s stock was 2.3% higher. PYMNTS reported that the company participated in a funding round for Prometeo, a Uruguay-based FinTech infrastructure company focused on financial institutions in Latin America. The FinTech raised $13 million in Series A funding.

The funding round was led by Antler Elevate with additional participation from Samsung Next and partners from DN Capital. The company will use the new capital to expand its multi-banking data and payments offerings in Latin America, according to a release emailed to PYMNTS.

Also within the payments segment, Mastercard’s stock was up 1.4%. As detailed this past week, Mastercard has partnered with Zand, a United Arab Emirates-based, artificial intelligence-driven FinTech and financial services group.

The collaboration will use Mastercard Move to enable cross-border transfers, from bank accounts to mobile wallets and cash pickup, across the UAE and beyond.

Block has launched new bitcoin mining hardware and software designed to decentralize and streamline the process of bitcoin mining. The new products are offered by Proto Global, a Block brand that offers bitcoin mining products and services, the company said. The new hardware, Proto Rig, is a modular bitcoin mining system that allows operators to upgrade individual hashboards without replacing entire units.  Shares gained 3.3%.

Amid declining names in our coverage, Roblox responded Friday (Aug. 15) to a Louisiana lawsuit alleging that the company fails to protect children on its interactive online gaming platform. The company’s shares gave up 8.8%. The lawsuit was filed Thursday by Louisiana Attorney General Liz Murrill.

C3.ai shares lost 19% in the Enablers segment, which still managed to gain 1.3%.

Preliminary financial results released earlier in the month showed that total revenue for the quarter was $70.2 million to $70.4 million. That guidance was roughly a third below previous projections, while operating losses are set to continue.

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