Tencent is looking to boost its cloud computing business in Europe relying on expertise in areas from gaming to video streaming that it has built up in China. The firm's European push will pitch it against U.S. hyperscalers Amazon, Microsoft and Google.
Tencent (TCEHY) possesses solid growth attributes, which could help it handily outperform the market.
Tencent (TCEHY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
China's Tencent is expected to become the second-largest shareholder of major K-Pop agency SM Entertainment , according to a South Korean filing on Tuesday.
Chinese tech giant Tencent has reported strong Q1 2025 results amid a challenging backdrop, with revenues and margins growing healthily. Despite plenty of risks and uncertainty, TCEHY management has invested heavily in AI, building a range of tools across the company's vast ecosystem. My valuation suggests that there is still modest upside from the current level, with much of the uncertainty now widely reflected in the share price.
Upgrade Tencent Music to Buy from Sell, citing strong Q1 results, margin improvement, and robust subscription growth. Music subscription momentum is driven by rising ARPU, paying users, and premium tier adoption, offsetting weakness in social entertainment. Potential M&A, especially with Ximalaya, could enhance content, user stickiness, and ARPU, though likely via dilutive stock transactions.
Tencent beat Q1 revenue expectations, but growth is unsustainable due to lack of gaming innovation and overreliance on existing IP. E-commerce expansion is intriguing but risky, given fierce competition and Tencent's previous failures in the sector. AI and advertising upgrades offer some promise, but macroeconomic weakness and unclear AI leadership limit upside potential.
Tencent delivered strong Q1/25 results with double-digit revenue and EPS growth, improved margins, and robust user growth across all business segments. AI investments, international gaming expansion, and margin improvements are key drivers for sustained double-digit growth and long-term value creation. Geopolitical risks and tariffs create uncertainty, but Tencent's domestic revenue dominance and financial strength provide resilience.
Tencent President Martin Lau said the company could create a "differentiated" AI agent through WeChat, the popular messaging app in China. Lau explained that WeChat, which is often dubbed a super-app, has various features like Mini Programs and content creation that can be tied together through AI.
Tencent's president Martin Lau says company has a "pretty strong stockpile of chips." Last month, Nvidia said the Trump administration imposed new chip export restrictions to China.
Tencent Holdings Limited (OTCPK:TCEHY) Q1 2025 Earnings Conference Call May 14, 2025 8:00 AM ET Company Participants Wendy Huang - IR Pony Ma - Chairman and CEO Martin Lau - President James Mitchell - CSO John Lo - CFO Conference Call Participants Thomas Chong - Jefferies William Packer - BNP Alicia Yap - Citigroup Kenneth Fong - UBS John Choi - Daiwa Jialong Shi - Nomura Alex Yao - JPMorgan Ronald Keung - Goldman Sachs Wendy Huang Good day, and good evening. Thank you for standing by.
Chinese tech giant Tencent says its artificial intelligence (AI) investments have begun paying off. In releasing its quarterly earnings on Wednesday (May 14), the company's CEO noted that its AI capabilities had “contributed tangibly” to its gaming and advertising businesses.