No China crisis as Tencent reports a positive Q1. But investors remain jittery on AI...
Chinese cloud and diversified technology company Tencent reported a positive Q1 2026 yesterday. The Shenzhen-based owner of WeChat and the China-only ‘everything app’ Weixin – which citizens use for chat, shopping, payments, entertainment, and more – reported nine percent year-on-year revenue growth to RMB196.5 billion ($28.9 billion), and gross profits of RMB 111.3 billion ($16.4 billion), up 11% year on year.
Core (non-IFRS) profit stood at RMB 69.8 billion ($10.2 billion), up 11% year on year, with IFRS net income standing at RMB 59.4 billion ($8.75 billion), up 19% YOY, and profit attributable to shareholders at RMB 58.1 billion ($8.6 billion), up 21% against the same quarter last year.
Good news for investors, then. Yet despite the strong showing – exceeding some analyst expectations – Tencent’s market capitalization has slumped by over 20% this year, equivalent to a loss in value of roughly $160 billion.
The stock has rallied by...
Copyright of this story solely belongs to diginomica.com. To see the full text click HERE
