Morgan Stanley cuts target for Tencent Holdings stock to HKD 650

Published on 10/08/2026 at 10:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Target fell from HKD 735 to HKD 650 on October 8, 2026. Tencent Holdings stock costs EUR 47.01 on October 8, 2026 after EUR 47.79, down 1.63 percent.

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

Tencent Holdings Ltd. (KYG875721634) was trading at EUR 47.01 at Lang & Schwarz on October 8, 2026 at 10:10 a.m. CEST, down 1.63 percent from the EUR 47.79 prior close. According to GMT EIGHT on October 8, 2026, Morgan Stanley lowered its Tencent target from HKD 735 to HKD 650.

AI spending cuts the target

Morgan Stanley said higher investment in foundation models, AI products and graphics processors could pressure Tencent's profit margins in the short term. The bank reiterated its overweight rating while reducing its target by HKD 85.

The report also said Morgan Stanley revised its non-IFRS operating-profit forecasts for 2026 and 2027 down by 6.00 percent to 7.00 percent because of higher AI investment. That creates a clear tension for investors: the near-term earnings burden is rising while the company is building infrastructure for future AI products.

Second-quarter growth funds the bet

Tencent's latest reported quarter still showed broad operating strength. In the second quarter of 2026, revenue reached CNY 204.8 billion, up 11.00 percent year over year, while gross profit rose 13.00 percent to CNY 118.4 billion, according to Yahoo Finance in the August 12, 2026 earnings transcript.

The same transcript put operating profit at CNY 67.3 billion, up 12.00 percent year over year, and non-IFRS operating profit at CNY 75.6 billion, up 9.00 percent. Operating capital expenditure reached CNY 51.8 billion, up 190.00 percent year over year, showing how heavily the AI buildout is affecting cash investment.

HKEX price reaches yearly floor

Tencent's Hong Kong listing is 0700.HK on HKEX, with Hong Kong dollar quotation and Communication Services classification, according to Global Banking and Finance. The HKEX quote was last at HKD 411.80 on October 8, 2026 at 3:59 p.m. HKT, versus a 52-week range of HKD 411.00 to HKD 683.00.

The next scheduled results date is November 18, 2026, according to Simply Wall St. That date gives investors a defined checkpoint for judging whether AI investment is translating into revenue and profit growth.

Stock trades below prior close

Tencent Holdings stock was trading at EUR 47.01 at Lang & Schwarz on October 8, 2026 at 10:10 a.m. CEST, down 1.63 percent versus the EUR 47.79 prior close at Lang & Schwarz on October 7, 2026. The further course of trading is shown by the continuously updated real-time quote of Tencent Holdings stock.