Morgan Stanley cuts target for Tencent Holdings stock from HKD 735 to HKD 650

Published on 10/19/2026 at 10:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Tencent Holdings stock costs EUR 47.39 on October 19, 2026 at Lang & Schwarz. Results are due on November 18, 2026.

AI spending reshapes estimates

Morgan Stanley cut its Tencent target from HKD 735 to HKD 650 on October 19, 2026.
Tencent reported RMB 204.80 billion of second-quarter revenue, up 11.00 percent, on August 12, 2026.
Tencent Holdings stock trades at EUR 47.39 at 10:10 a.m. CEST at Lang & Schwarz on October 19, 2026.
Tencent will announce third-quarter results on November 18, 2026.

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

Tencent Holdings Ltd. (ISIN KYG875721634) is priced at EUR 47.39 at Lang & Schwarz on October 19, 2026 at 10:10 a.m. CEST. GMT EIGHT reported on October 19, 2026 that Morgan Stanley cut its Tencent target from HKD 735 to HKD 650 as artificial intelligence investment weighs on near-term margins.

Why Morgan Stanley cut the target

The revised target reflects higher spending on basic models, artificial intelligence products and graphics processors, according to GMT EIGHT. Morgan Stanley expects Tencent's non-International Financial Reporting Standards operating profit forecasts for 2026 and 2027 to be reduced by 6 percent to 7 percent.

The same report projects 2026 revenue growth of 10.80 percent and operating profit growth of 5 percent under the non-International Financial Reporting Standards measure. Morgan Stanley retained an Overweight rating while identifying AI investment as the immediate margin counter-factor.

What do the results mean for margins?

Tencent's second-quarter revenue rose 11.00 percent to RMB 204.80 billion, according to the company's investor-relations page dated August 12, 2026. The company also lists its 2026 third-quarter results announcement for November 18, 2026, giving investors a defined date for testing whether AI costs are accelerating faster than revenue.

Three dated Tencent developments

Tencent announced second-quarter results on August 12, 2026, with revenue of RMB 204.80 billion. It priced US$1.8 billion and CNY 26.0 billion of notes on October 14, 2026, according to its investor-relations page. Morgan Stanley cut its target from HKD 735 to HKD 650 on October 19, 2026, as reported by GMT EIGHT.

Upcoming reporting date

Tencent's next substantiated reporting date is November 18, 2026, when it plans to announce third-quarter results, according to the company's investor-relations calendar.

Hong Kong listing and investor context

Tencent is listed on the Hong Kong Stock Exchange under ticker 700.HK, and its business spans value-added services, marketing services, fintech and enterprise services. TradingView identifies the company as a technology services business and records its ISIN as KYG875721634.

Stock price in euros

The euro quotation gives German investors a direct market reference while the analyst debate centers on the cost of Tencent's AI expansion. The stock was trading at EUR 47.39 at Lang & Schwarz on October 19, 2026 at 10:10 a.m. CEST. The further course of trading is shown by the continuously updated real-time quote of Tencent Holdings stock.