---
title: "Why Tencent Holdings Stock Triumphed Today"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/219740691.md"
description: "Tencent Holdings stock rose over 3% on a generally down day for the market, following the release of its third-quarter results. The company reported an 8% year-over-year revenue increase to over 167 billion yuan and a 47% rise in net income to 53.2 billion yuan, beating analyst expectations. Growth was driven by a 14% increase in domestic gaming revenue, aided by the launch of a new game, Black Myth: Wukong. However, Tencent's investments in AI have yet to yield significant revenue, which may concern investors moving forward."
datetime: "2024-11-15T00:08:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/219740691.md)
  - [en](https://longbridge.com/en/news/219740691.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/219740691.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/219740691.md) | [繁體中文](https://longbridge.com/zh-HK/news/219740691.md)


# Why Tencent Holdings Stock Triumphed Today

On a generally gloomy Thursday for the stock market, **Tencent Holdings** (TCEHY 3.05%) was something of a standout. On the Chinese company's latest news, investors piled into its shares, leaving them with a more than 3% increase at market close. This compared very favorably to the **S&P 500** index's 0.6% dip on the day.

## A big bottom-line pop

Tencent reported its third-quarter results after market hours on Wednesday, revealing that it managed to grow revenue by 8% year over year in the period to over 167 billion yuan ($23.1 billion). International Financial Reporting Standards (IFRS) net income saw a more impressive leap, rising by 47% to 53.2 billion yuan ($7.4 billion).

The social media and gaming specialist essentially met the consensus analyst estimate for revenue. It beat on the bottom line, as those prognosticators following the stock were collectively modeling 52.9 billion yuan ($7.3 billion) for that line item.

Tencent's revenue growth was aided by a 14% rise in the take for its domestic gaming business, which brought in more than 37 billion yuan ($5.1 billion). This was particularly encouraging given that the unit posted only 9% growth the previous quarter and in the two frames before that, reported year-over-year declines. What helped greatly was the introduction of a popular new title, _Black Myth: Wukong_.

## Large investments not yet bearing fruit

On a down note, Tencent said that its considerable investments into artificial intelligence (AI) have yet to pay off sufficiently. It is not yet producing meaningful revenue, and investors might have to wait several quarters for it to significantly boost earnings, too.

All in all, though, it was a good quarter for the company, particularly given the relative sluggishness of the domestic economy -- which has battered other business sectors. Slow development of the AI efforts might be a source of concern if they don't accelerate soon. Investors should keep an eye on this in the coming months.

### Related Stocks

- [TENCENT-R (80700.HK)](https://longbridge.com/en/quote/80700.HK.md)
- [Tencent Holdings Limited (TCEHY.US)](https://longbridge.com/en/quote/TCEHY.US.md)
- [Tencent Holdings Limited (TCTZF.US)](https://longbridge.com/en/quote/TCTZF.US.md)
- [TENCENT (00700.HK)](https://longbridge.com/en/quote/00700.HK.md)

## Related News & Research

- [Tencent (TCEHY) Brings AI Agents to WeChat's 1 Billion Users as Alibaba and Baidu Race Ahead](https://longbridge.com/en/news/280061085.md)
- [5 Simple ETFs to Buy With $1,000 and Hold for a Lifetime](https://longbridge.com/en/news/281345615.md)
- [Warren Buffett Admits He Sold Apple Too Early, Eyes Future Buying But Not Yet](https://longbridge.com/en/news/281336451.md)
- [BUZZ-Rosenblatt says finding partner for Snap's smart glasses unit tough](https://longbridge.com/en/news/281357569.md)
- [BUZZ-Street View: Nike's turnaround remains work in progress](https://longbridge.com/en/news/281331333.md)