Goldman Sachs cuts target for Tencent Holdings stock to HKD 650

Published on 10/05/2026 at 10:35 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Goldman's target fell from HKD 670 to HKD 650. Tencent Holdings stock costs EUR 48.07 on October 5, 2026 after EUR 47.36.

Tencent Holdings Ltd., KYG875721634, Illustration mit AI erstellt.

Tencent Holdings stock was trading at EUR 48.07 at Lang & Schwarz on October 5, 2026 at 10:30 a.m. CEST, up 1.50 percent from the EUR 47.36 prior close. Goldman Sachs cut its 12-month target for Tencent from HKD 670 to HKD 650 on September 17, 2026, according to Longbridge.

Goldman trims target as AI spending rises

The HKD 20 reduction equals 2.99 percent of the previous target. Longbridge said Goldman Sachs linked the change to higher artificial intelligence investment and recent equity financing, while retaining a Buy rating.

The target decision puts capital allocation at the center of the Tencent debate. Management is investing heavily in compute, while the core businesses continue to generate growth and fund the expansion.

Second-quarter growth stays measurable

For the second quarter of 2026, Tencent posted revenue of RMB 204.8 billion, up 11.00 percent year over year, and gross profit of RMB 118.4 billion, up 13.00 percent. Operating profit reached RMB 67.3 billion, up 12.00 percent, according to Yahoo Finance.

The same transcript shows the counterweight to the AI spending: marketing-services revenue grew 22.00 percent to RMB 44.0 billion in the second quarter, while domestic games revenue increased 17.00 percent. Operating capital expenditure reached RMB 51.8 billion, up 190.00 percent year over year, making investment intensity a key margin and cash-flow variable.

November results set the next marker

Tencent's investor-relations page lists the second-quarter results announcement on August 12, 2026, and the company is scheduled to discuss third-quarter results on November 18, 2026, according to Stock Analysis. That date gives the market a defined checkpoint for judging whether AI investment is translating into higher revenue and profit growth.

Stock trades above prior close

Tencent Holdings stock was trading at EUR 48.07 at Lang & Schwarz on October 5, 2026 at 10:30 a.m. CEST, plus 1.50 percent versus the prior close of EUR 47.36 on October 2, 2026. The primary listing is Tencent's 0700 share on the Hong Kong Stock Exchange, where the October 5, 2026 quote was HKD 423.00 and the 52-week range was HKD 411.00 to HKD 682.50.

The further course of trading is shown by the continuously updated real-time quote of Tencent Holdings stock.