The author or authors do not own shares in any securities mentioned in this article. 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.
Price to Earnings Ratio vs. the Market
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.
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- Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People’s Republic of China and internationally.
- 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.
- Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004.
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 best days to trade forex 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.
- 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.
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- 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 News
Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People’s Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. In addition, the company operates innovation business, which includes artificial intelligences; and discover and develops enterprise and next-generation technologies for food production, energy, and water management application. Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004. The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China.
China’s Tencent Q4 revenue exceeds estimates
Capital investment in the fourth quarter nearly quadrupled year on year to 36.6 billion yuan (US$5.1 billion), driven by purchases of graphics processing units “for inference needs”, the executive said, referring to how generative AI systems “think”. That being said, the resumption of growth could stall if China’s central bank remains too restrictive, or if the government’s proposed stimulus measures fall short of what is necessary. Given all the uncertainty around the final policy, as well as the ever-changing tariff policy in the U.S., it’s no wonder investors are booking profits today after a strong run. That may have disappointed some Chinese investors, who might have decided to take profits on the news. A combination of expected stimulus, the DeepSeek AI model breakthrough in January, and lower valuations than U.S. counterparts has caused a big surge in Chinese stocks to date.
Tencent is still a very good company despite market’s disappointment about AI-related growth: Analyst
Profit reached US$7.1 billion for the quarter, while full-year profit rose to US$26.8 billion.
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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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.
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.
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.
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 Bitcoin cfd 21%. It provided 2025 capital expenditure guidance of about CNY 90 billion (USD 12.5 billion).
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 alvexo forex broker 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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Chinese internet and gaming giant Tencent said on Wednesday that profits in the fourth quarter of 2024 surged 90 percent as the firm accelerates a push into artificial intelligence (AI). Chinese internet and gaming giant Tencent said on Wednesday that profits in the fourth quarter of 2024 surged 90% as the firm accelerates a push into artificial intelligence (AI). Tencent Holdings is poised for “long-term growth” from its aggressive spending on artificial intelligence (AI) as China’s most valuable tech giant aligns its future with DeepSeek and in-house models, according to analysts. A consistent theme among these analysts is that they have high expectations for Tencent’s artificial intelligence (AI) development. Daiwa said Tencent will see long-term growth fueled by AI, while Citi expects AI to improve the company’s consumer-facing products.