Morgan Stanley cuts target for Tencent Holdings stock to HKD 650
Published on 10/09/2026 at 11:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSKey points in brief
- Morgan Stanley cut Tencent's target from HKD 735.00 to HKD 650.00 on October 9, 2026, citing higher AI investment.
- Tencent reported CNY 204.80 billion revenue in the second quarter of 2026, up 11.00 percent year over year.
- The Lang & Schwarz quote was EUR 47.87 on October 9, 2026, up 1.12 percent from EUR 47.34.
Morgan Stanley cut its Tencent Holdings target from HKD 735.00 to HKD 650.00 on October 9, 2026, citing higher artificial intelligence investment, according to GMT EIGHT. The bank retained an overweight rating while warning that early AI spending could pressure margins.
Three dated Tencent events
On August 12, 2026, Tencent published its second-quarter results, with revenue of CNY 204.80 billion, according to finanzen.ch. On September 21, 2026, Tencent led a US$18 million Series B funding round for W4 Games, as reported by Simply Wall St. On October 9, 2026, Morgan Stanley lowered its target from HKD 735.00 to HKD 650.00, according to GMT EIGHT.
What does AI spending mean for margins?
Morgan Stanley said Tencent's non-international financial reporting standards operating-profit estimates for 2026 and 2027 were reduced by 6.00 percent to 7.00 percent because of higher AI investment. The report projected 2026 revenue growth of 10.80 percent and operating-profit growth of 5.00 percent, while Tencent's CNY 18.00 billion AI investment in 2025 was expected to more than double in 2026, according to GMT EIGHT.
Second-quarter results set the baseline
Tencent's second-quarter 2026 revenue reached CNY 204.80 billion, up 11.00 percent from the second quarter of 2025. Net income was CNY 56.00 billion, while earnings per share rose to CNY 6.21 from CNY 6.12, but the profit margin fell to 27.00 percent from 30.00 percent, according to Simply Wall St. The combination of double-digit revenue growth and a lower margin explains why AI spending is central to the current valuation debate.
Next results date and stock context
Tencent is scheduled to report third-quarter 2026 results on November 18, 2026, according to Simply Wall St. Its HKEX quote was HKD 424.80 at 4:08 p.m. HKT on October 9, 2026, while the 52-week range was HKD 411.00 to HKD 669.00. The Lang & Schwarz quote was EUR 47.87 on October 9, 2026 at 11:00 a.m. CEST, plus 1.12 percent versus the prior close of EUR 47.34. 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 Limited
- ISIN: KYG875721634
- Ticker: 0700.HK
- Primary exchange: HKEX
- Price Lang & Schwarz (as of October 9, 2026, 11:00 a.m. CEST): EUR 47.87
- Change versus prior close: plus 1.12 percent
- Prior close Lang & Schwarz (October 8, 2026): EUR 47.34
- Market capitalization: HKD 3.8 trillion (as of October 9, 2026)
- 52-week range: HKD 411.00-669.00 (as of October 9, 2026)
- Sector / Industry: Communication Services / Internet Content and Information
- Index membership: Hang Seng
- Next earnings date: November 18, 2026
Market context: Latest market reports.
