Morgan Stanley cuts target for Tencent Holdings stock from HKD 735 to HKD 650
Published on 10/16/2026 at 10:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSInvestor timetable
- Morgan Stanley cut its Tencent target from HKD 735.00 to HKD 650.00 on October 14, 2026.
- Second-quarter revenue reached RMB 204.80 billion, up 11.00 percent year over year.
- Tencent Holdings stock traded at EUR 47.32 at 10:01 a.m. CEST at Lang & Schwarz on October 16, 2026.
Tencent Holdings (ISIN KYG875721634) stock was trading at EUR 47.32 at Lang & Schwarz on October 16, 2026 at 10:01 a.m. CEST. The immediate catalyst was Morgan Stanley's October 14, 2026 decision to cut its target from HKD 735.00 to HKD 650.00 as higher artificial intelligence investment pressured near-term profit expectations.
AI spending cuts the target
According to GMT EIGHT on October 14, 2026, Morgan Stanley said Tencent was increasing spending on basic models, new artificial intelligence products and graphics processors. The report lowered the target from HKD 735.00 to HKD 650.00 and retained an overweight rating, while estimating that non-IFRS operating profit growth would reach 5.00 percent in 2026.
The target change puts execution ahead of valuation in the stock debate. Tencent must show that its artificial intelligence spending can support advertising, cloud and product monetization rather than only raise costs.
What does the next quarter test?
The second-quarter figures show why the company can fund that build-out. FSM Global reported that revenue rose 11.00 percent year over year to RMB 204.80 billion for the quarter ended June 30, 2026, while adjusted net profit increased 9.00 percent to RMB 68.40 billion. Domestic games grew 17.00 percent and Marketing Services revenue increased 22.00 percent.
Three dated signals for Tencent
On August 12, 2026, Tencent released second-quarter results with RMB 204.80 billion in revenue, according to FSM Global. On September 24, 2026, Tencent set November 18, 2026 as the board meeting date for third-quarter results, as reported by Futu. On October 14, 2026, Morgan Stanley cut its target from HKD 735.00 to HKD 650.00, according to GMT EIGHT.
Next reporting date is set
Futu reported on September 24, 2026 that Tencent's board will meet on November 18, 2026 to approve unaudited third-quarter results for the three and nine months ended September 30, 2026.
Stock price and valuation context
The market capitalization was HKD 3.8 trillion as of October 16, 2026, while the 52-week range was HKD 411.00 to HKD 664.00. The current euro quotation sits above the lower end of that range in the company's Hong Kong listing context, but the key near-term test is whether revenue growth can absorb the higher cost of artificial intelligence infrastructure.
Tencent Holdings was trading at EUR 47.32 at Lang & Schwarz on October 16, 2026 at 10:01 a.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: HKEX
- Price Lang & Schwarz (as of October 16, 2026, 10:01 a.m. CEST): EUR 47.32
- Market capitalization: HKD 3.8 trillion (as of October 16, 2026)
- 52-week range: HKD 411.00-664.00 (as of October 16, 2026)
- Sector / Industry: Communication Services / Internet Content and Information
Market context: Latest market reports.
