Most likely, the downdraft was caused by disappointment over today’s action — or rather inaction — by China’s central bank. In addition, a Wall Street analyst issued a cautious note on Chinese stocks last night after a huge year-to-date rally, which may have encouraged some profit-taking. Turning to Wall Street, the analysts’ consensus rating for Tencent is Strong Buy based on seven Buy ratings over the last three months. With that comes an average price target of HK$586.18, a high of HK$646, and a low of HK$525. Yahoo Finance host Brad Smith tracks several of this morning’s biggest stock moves in this Market Minute, including Boeing’s (BA) upbeat outlook, Tencent’s (TCEHY, 0700.HK) surging fourth quarter profits, and cryptocurrency XRP’s (XRP-USD) moves higher after the US Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple Labs. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance’s Market Minute.
The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China. Sign-up to receive the latest news and ratings for Tencent and its competitors with MarketBeat’s FREE daily newsletter. Select to analyze similar best ecommerce stock companies using key performance metrics; select up to 4 stocks.
- Tencent earnings and sales beat expectations, powered by strong growth in gaming revenue and AI progress.
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- The across-the-board move indicates that the declines had to do with Chinese stocks broadly and not individual stock news.
- Tencent president Martin Lau Chi-ping said on Wednesday that the company has boosted spending on AI infrastructure.
News in other languages: Tencent Holdings Limited
The author or authors do not own shares in any securities mentioned in this article. alvexo forex broker Tencent on Wednesday posted a fourth-quarter beat on top and bottom line driven by a surge in gaming and advertising revenue. Shawn Yang, analyst at Arete Research discusses Tencent’s earnings and says that while Alibaba might be currently leading than its China internet company peers in the AI race, others could catch up so… Tencent reported a strong finish to 2024, with profit for the three months ended December reaching 51.3 billion yuan. Annual profit rose 68 per cent to 194 billion yuan, giving Tencent the deep pockets needed for its continued investment.
Quotes and Performance
Both of these beat Can you mine xrp Wall Street’s estimate of 78 cents per share and revenue of $23.22 billion. On the positive side, China’s central bank might have felt comfortable holding rates today because China’s economy seems to be picking up a bit. Recent retail sales and industrial output readings in the country showed an improvement in growth, and yesterday, Tencent reported earnings that showed accelerating revenue and earnings growth relative to the prior year. Yesterday, analysts at Bank of America cautioned that a correction could be coming for Chinese stocks. The analysts noted that the recent rally bears similarities to the early 2015 rally in Chinese stocks, as the country attempted to stimulate its way to more consumer-oriented spending and away from manufacturing and industrial exports.
Similarly, like the DeepSeek and AI enthusiasm of today, investors were also excited about Chinese technology breakthroughs in 2015, with Alibaba’s landmark initial public offering coming at the end of 2014. Tencent delivered robust fourth-quarter earnings—revenue rose 11% year over year and adjusted operating profit grew 21%. It provided 2025 capital expenditure guidance of about CNY 90 billion (USD 12.5 billion).
Wondering what the next stocks will be that hit it big, with solid fundamentals? Enter your email address to see which stocks MarketBeat analysts could become the next blockbuster growth stocks. Chinese tech giant Tencent is likely to report a 62 per cent rise in fourth-quarter profit later on Wednesday.
Tencent: Integration of DeepSeek Strengthens Ecosystem and Long-Term Growth Potential
Its consumer-facing Yuanbao app saw the number of users increase 20-fold to become the third most popular app in China from February to March, rivalling ByteDance’s Doubao and Alibaba Group Holding’s Qwen. Market capitalization, also called net worth, is the total value of all of a company’s outstanding shares. It is calculated by multiplying the stock price by the number of shares outstanding. More updates for Tencent stock included Citi analysts bumping their price target up from HK$648 to HK$681, while Daiwa analysts raised theirs from HK$565 to HK$670. Tencent president Martin Lau Chi-ping said on Wednesday that the company has boosted spending on AI infrastructure.
Even with today’s sell-off, Alibaba, Tencent, and Futu Holdings are up 69%, 31%, and 43%, respectively, on the year. The big rally in Chinese stocks since last summer, and especially since the beginning of 2025, has largely been due to new stimulus measures. Since June 16, 2004, Tencent Holdings’s market cap has increased from 6.97B to 4.69T, an increase of 67,182.23%. The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation.
Tencent Holdings Limited Stock
Kaiyuan Securities analysts Fang Guangzhao and Tian Peng wrote that AI is “expected to continue to refresh the company’s core business and drive long-term growth”. “We believe AI monetisation will go beyond the cloud to cover a wide range of scenarios, especially via Tencent’s existing ad business and capitalisation of its Weixin ecosystem to realise the potential from mini shops and search,” the researchers wrote, using the Chinese name for WeChat, the country’s largest social network. HSBC analysts Charlene Liu and Ritchie Sun wrote in a research note that Tencent’s capital expenditure could reach 90 billion yuan this year, up from 77 billion yuan in 2024, as it steps up AI investment to grow its core businesses. Alibaba recently unveiled a plan to spend 380 billion yuan on AI infrastructure over the next three years. The tech giant, which at US$650 billion is China’s most valuable company, is proving to be a formidable player in China’s AI market.
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With the prospect of higher U.S. tariffs on Chinese goods ramping up, people have been reluctant to spend. Tencent Holdings has a market cap or net worth of 4.69 trillion as of March 20, 2025. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro – Your Social Investment Network. Its registered office and its principal place of business is at Office 207 and 208, 15th Floor Floor, Al Sarab Tower, ADGM Square, Al Maryah Island, Abu Dhabi, United Arab Emirates (“UAE”). With innovative investment tools and a collaborative trading community, eToro empowers millions of users in over 100 countries to trade and invest in a simple and transparent way.
Barclays also highlighted the company’s AI work and said it could become a leader in the Chinese AI market despite its late entry into the space. Tencent (TCEHY) stock was a hot topic among analysts on Thursday as they updated their coverage of the Chinese tech company after its latest earnings report. As a quick reminder, the company posted earnings per share of 83 cents on revenue of $23.9 billion.
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- Its consumer-facing Yuanbao app saw the number of users increase 20-fold to become the third most popular app in China from February to March, rivalling ByteDance’s Doubao and Alibaba Group Holding’s Qwen.
Profitability
Tencent nearly doubled its profit as the Chinese technology giant continued to build on its gaming momentum. Tencent earnings and sales beat expectations, powered by strong growth in gaming revenue and AI progress. However, China is also trying to balance stimulus measures with not letting its currency devalue too much. Lower interest rates generally cause a debasement of a country’s currency, if a country cuts rates while peers do not. So today, the PBOC opted to leave the one-year loan prime rate at 3.1% and the five-year rate at 3.6%, instead of doing another cut.
Ma said Tencent has adopted a “double-core” strategy on AI that uses both DeepSeek and its own Yuanbao models, following an approach similar to how it has dominated the video gaming industry by promoting self-developed titles and those developed by independent studios. Thus, the government and the People’s Bank of China (PCOB) have embraced more stimulus measures since last summer. As part of that, the PCOB has been lowering interest rates, with its latest 25-basis-point cut coming last October. China has been mired in a recessionary state ever since the government’s heavy-handed crackdown on tech companies and entrepreneurs, the restrictive “zero-Covid” policies, and the popping of the country’s property bubble.
However, share buybacks for 2025 were reduced by about 30% compared with 2024. Chinese technology giant Tencent Holdings posted on Wednesday a 11% rise in fourth-quarter revenue, driven by growth in its gaming business. Chinese technology giant Tencent said on Wednesday it would boost capital expenditure in 2025, as it strengthens artificial intelligence development and infrastructure. The across-the-board move indicates that the declines had to do with Chinese stocks broadly and not individual stock news.
Tencent’s Hong Kong-listed shares declined 3.8 per cent to HK$519.5 on Thursday. Beyond chatbots and models, Tencent’s Ma expected more innovation in AI agents, software driven by generative AI that automates complex tasks across platforms. Ma said that there may be a revamp of WeChat’s mini programs, the small applications that run directly within the chat app. Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.