Morgan Stanley cuts target to HKD 650 for Tencent Holdings stock
Published on 10/22/2026 at 12:09 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSThree figures shape the setup
- Morgan Stanley cut its Tencent target to HKD 650 on October 22, 2026.
- Second-quarter revenue reached CNY 204.785 billion, up 11.00 percent year over year.
- Tencent Holdings stock trades at EUR 43.50 at 12:04 p.m. CEST at Lang & Schwarz on October 22, 2026.
- Tencent's next quarterly results are scheduled for November 18, 2026.
Tencent Holdings Ltd. (ISIN KYG875721634) stock was quoted at EUR 43.50 at Lang & Schwarz at 12:04 p.m. CEST on October 22, 2026. GMT EIGHT reported that Morgan Stanley cut its Tencent target from HKD 735 to HKD 650 on October 22, 2026, citing pressure from higher artificial intelligence investment.
AI spending cuts into margins
Morgan Stanley said Tencent is increasing investment in basic models, new artificial intelligence products and graphics processors. Its analysts revised 2026 and 2027 operating profit under non-International Financial Reporting Standards down by 6.00 percent to 7.00 percent, while retaining an overweight rating.
The report also said Tencent invested CNY 18.0 billion in new artificial intelligence products in 2025 and expects that amount to more than double in 2026. That creates a measurable tension between near-term margin pressure and longer-term product expansion.
What did Tencent report?
In the second quarter of 2026, Tencent generated CNY 204.785 billion in revenue, up 11.00 percent from the same quarter a year earlier, according to GMT EIGHT. Profit attributable to equity holders was CNY 56.022 billion, up 0.70 percent year over year, while adjusted profit reached CNY 68.415 billion, up 9.00 percent.
Three dated company events
On August 12, 2026, Tencent announced second-quarter results with revenue of CNY 204.785 billion, according to Tencent. On October 14, 2026, it reported pricing for USD 1.8 billion and CNY 26.0 billion of notes on its investor page. On October 21, 2026, Tencent completed that issuance, according to Gelonghui.
What comes next for Tencent?
Tencent's next quarterly results are scheduled for November 18, 2026, according to its investor calendar. The date gives investors a defined checkpoint for judging whether artificial intelligence spending is translating into revenue growth without extending the current margin pressure.
Scale and Hong Kong valuation
Tencent's primary listing is on the Hong Kong Stock Exchange, where the stock was last quoted at HKD 382.40 at 4:08 p.m. HKT on October 22, 2026. Its market capitalization was HKD 3.4 trillion, and its 52-week range was HKD 378.40 to HKD 664.00. The company operates across value-added services, online advertising, fintech and business services.
Tencent Holdings stock was trading at EUR 43.50 at Lang & Schwarz on October 22, 2026 at 12:04 p.m. CEST. The further course of trading is shown by the continuously updated real-time quote of Tencent Holdings stock.
Tencent Holdings stock facts
- Company: Tencent Holdings Ltd.
- ISIN: KYG875721634
- Ticker: 0700.HK
- Primary exchange: Hong Kong Stock Exchange
- Price Lang & Schwarz as of October 22, 2026, 12:04 p.m. CEST: EUR 43.50
- Market capitalization: HKD 3.4 trillion (as of October 22, 2026)
- 52-week range: HKD 378.40-664.00 (as of October 22, 2026)
- Sector / Industry: Communication Services / Internet Content and Information
- Next earnings date: November 18, 2026
Market context: Latest market reports.
