The strong user growth of WorkBuddy, an AI-powered workplace assistant developed by Tencent, is reigniting investor confidence in the Chinese tech giant.
Since its launch in March, WorkBuddy has quickly become one of the most popular AI workplace assistants in China. According to data from Analysys, cited by 36Kr, the product's monthly visits reached 20.97 million by June, surpassing ByteDance's Trae and Alibaba's QoderWork. As Tencent prepares to release its earnings report on Wednesday, the market is closely watching whether the company will disclose WorkBuddy's specific operational metrics alongside the quarterly results.
Analysts believe WorkBuddy's impressive performance could serve as a key catalyst for Tencent's stock. Jiong Shao, an analyst at Barclays Capital in New York, stated, "If Tencent starts disclosing encouraging metrics for WorkBuddy, I think it will help change the market's perception of the company." He added that Tencent has recently become a top pick for Barclays for the first time in five years, citing that "over the long term, they have a better chance of winning this competition."
Despite the positive signals from WorkBuddy, Tencent's overall stock performance remains challenging. The stock has rebounded about 17% from its June low, but it is still down more than 20% year-to-date, underperforming the Hang Seng Tech Index, which has fallen approximately 11% over the same period.
WorkBuddy's Rise from Following to Leading
The rise of WorkBuddy represents a rare proactive move by Tencent in the AI race. In March, the company leveraged the wave of AI user interest sparked by OpenClaw to launch the product, quickly establishing a leading position in the competitive workplace AI market.
According to data from Analysys, cited by 36Kr, WorkBuddy's monthly visits reached 20.97 million by June, ranking first among China's AI workplace assistants, ahead of ByteDance's Trae and Alibaba's QoderWork. This achievement is particularly noteworthy because the workplace scenario targets a broader white-collar demographic, with a potential market size far exceeding that of tools aimed at programmers.
Morningstar senior equity analyst Ivan Su pointed out that WorkBuddy's deep integration with WeChat is its core competitive advantage. "If you're looking for a highlight in Tencent's AI strategy worth focusing on, WorkBuddy is undoubtedly the top choice for investors," he said. He believes that leveraging WeChat's massive user base gives WorkBuddy higher user stickiness and switching costs compared to competitors.
AI workplace assistants are becoming a new battleground for global tech companies. In the Chinese market, Baidu and MoonShot AI have launched their own workplace assistant products, intensifying the competitive landscape. Reports indicate that Tencent has designated WorkBuddy as one of its highest-priority internal strategic projects.
Barclays Capital's Jiong Shao gave a high rating to Tencent's long-term competitiveness. He stated, "Tencent may be the only company in the world capable of building a top-tier general-purpose AI agent," and believes that the company's strategic allocation of resources to WorkBuddy has created a competitive advantage over its rivals.
This assessment is backed by Tencent's vast business empire spanning social networking, gaming, e-commerce, and payments. Some analysts believe that the high prevalence of Tencent's products and its business diversification give it a unique advantage in deploying AI applications.
Analysts widely believe that whether this week's earnings report can disclose substantive growth data for WorkBuddy will be a key milestone in determining whether Tencent's AI narrative can truly materialize and drive a valuation recovery.
Beyond WorkBuddy's user data, investors are also closely watching Tencent's capital expenditure plans and their impact on profits, as detailed in the Wednesday earnings report.
Regarding expectations for the second-quarter performance, Tencent's revenue growth is expected to be near 10%, while net profit growth is projected to be around 5%. Against the backdrop of accelerated AI investment, the direction of capital expenditure will directly influence the market's assessment of its earnings quality.
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