Tencent Could Continue to Rebalance Investment Portfolio

Dow Jones12:41

0441 GMT - Tencent could continue to evaluate its investment portfolio due to its AI initiatives' significant and potentially unpredictable costs, Citi analysts say in a research note. Citi expects Tencent's 2Q adjusted net profit to be slightly lower than consensus, as the bank is cautious on the profit drag from Tencent's AI spending. Tencent may consider divesting of mature or less strategic companies that offer limited future synergies, and instead increase investments in AI-related fields such as large language models and chips. Opportunistic buybacks, strategic AI investments and AI-powered core business growth remain key priorities for Tencent, they say. Citi trims Tencent's target price to HK$758.00 from HK$763.00. Shares are last at HK$475.00. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

July 08, 2026 00:41 ET (04:41 GMT)

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