Investors Should Prioritize Tencent's Growth Over Near-Term Profitability -- Market Talk

Dow Jones11:00

0300 GMT - Investors should prioritize Tencent's growth potential over short-term profitability, UBS analysts say in a research note. Tencent's Chinese tech peers, such as Alibaba and Baidu, have experienced valuation multiple expansion following announcements of additional AI investments, the analysts say. Tencent has lagged peers due to investors' concerns about its relatively slower pace of AI spending, the analysts note. Tencent's recent AI product launches and its commitment to further AI investments, suggest the stock is positioned for a valuation multiple re-rating driven by its growth potential, they say. Even after factoring in Tencent's planned AI investments, its 2026 adjusted EPS growth is still attractive compared with global gaming and advertising platforms, they add. Shares are last 0.1% lower at HK$512.00. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

March 19, 2026 23:00 ET (03:00 GMT)

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