--- title: "Understanding the Market | Tencent fell over 4% during trading as institutions expressed concerns about the impact of large capital expenditures on EPS" type: "News" locale: "en" url: "https://longbridge.com/en/news/296744434.md" description: "Tencent's intraday drop exceeded 4%, and as of the time of writing, it fell by 3.76%, reporting HKD 439.8, with a transaction volume of HKD 9.602 billion. In terms of news, Tencent's financial report shows that its revenue in the second quarter was CNY 204.785 billion, a year-on-year increase of 11%, marking the first time it surpassed CNY 200 billion; however, capital expenditure reached CNY 52.784 billion, a year-on-year increase of 176% and a quarter-on-quarter increase of 65%, far exceeding the market expectation of CNY 32.1 billion; free cash flow recorded a negative CNY 13.8 billion. Roughly calculated, the company's capital expenditure in the second quarter was nearly three times that of CNY 19.1 billion in the same period last year, totaling CNY 84.72 billion in the first half of the year, already surpassing the full-year scale of CNY 79.2 billion for 2025. CITIC Construction Investment released a research report stating that the market is concerned about the impact of large capital expenditures on EPS, but the firm believes: management mentioned that capital expenditures are concentrated in 2026-2027, with training computing power being a fixed cost, and inference computing power being dynamically invested based on returns, ensuring both the lower limit of ROI and the upper limit of the investment period for large capital expenditures; they are optimistic about Workbuddy occupying the domestic AI office track mindset, with rapid recent user growth, and believe that its user and data advantages are expected to feed back into the improvement of Hy's foundational model capabilities; in addition, they look forward to the public beta of WeChat Agent" datetime: "2026-08-24T06:25:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296744434.md) - [en](https://longbridge.com/en/news/296744434.md) - [zh-HK](https://longbridge.com/zh-HK/news/296744434.md) generator: "portal-rs" --- # Understanding the Market | Tencent fell over 4% during trading as institutions expressed concerns about the impact of large capital expenditures on EPS According to Zhitong Finance APP, Tencent (00700) fell over 4% during the trading session, and as of the time of publication, it was down 3.76%, priced at HKD 439.8, with a trading volume of HKD 9.602 billion. On the news front, Tencent's financial report shows that its revenue for the second quarter was CNY 204.785 billion, a year-on-year increase of 11%, marking the first time it has surpassed CNY 200 billion; however, capital expenditures reached CNY 52.784 billion, a year-on-year increase of 176% and a quarter-on-quarter increase of 65%, far exceeding the market expectation of CNY 32.1 billion; free cash flow recorded a negative CNY 13.8 billion. Rough calculations indicate that the company's capital expenditures in the second quarter were nearly three times the CNY 19.1 billion from the same period last year, totaling CNY 84.72 billion for the first half of the year, already surpassing the full-year scale of CNY 79.2 billion for 2025. CITIC Construction Investment released a research report stating that the market is concerned about the impact of large capital expenditures on EPS, but the firm believes: management mentioned that capital expenditures are concentrated in 2026-2027, with training computing power being a fixed cost, and reasoning computing power being dynamically invested based on returns, which ensures both the lower limit of ROI and the upper limit of the investment period for large capital expenditures; they are optimistic about Workbuddy occupying the domestic AI office track mindset, with rapid user growth recently, and they believe its user and data advantages are expected to feed back into the enhancement of Hy's foundational model capabilities; in addition, they look forward to the public beta of WeChat Agent ### Related Stocks - [TCEHY.US](https://longbridge.com/en/quote/TCEHY.US.md) - [TCTZF.US](https://longbridge.com/en/quote/TCTZF.US.md) - [00700.HK](https://longbridge.com/en/quote/00700.HK.md) - [601066.CN](https://longbridge.com/en/quote/601066.CN.md) - [06066.HK](https://longbridge.com/en/quote/06066.HK.md) - [80700.HK](https://longbridge.com/en/quote/80700.HK.md) - [HTCD.SG](https://longbridge.com/en/quote/HTCD.SG.md) ## Related News & Research - [ByteDance Merges AI Teams Into Doubao to Challenge Tencent WorkBuddy Lead](https://longbridge.com/en/news/296785723.md) - [Tencent Details Progress Toward Carbon Neutrality Goals and Outlines AI-Era Priorities | TCEHY Stock News](https://longbridge.com/en/news/296040172.md) - [FlyEdge Opens Public Preview of Aviation-Focused Blockchain for Tokenized Airline Loyalty](https://longbridge.com/en/news/296770703.md) - [US CFTC seeks comment on compute derivatives as AI demand grows](https://longbridge.com/en/news/296385418.md) - [Twenty One Capital CEO Raphael Zagury to speak at Bitcoin Asia 2026 session on hashrate bear market](https://longbridge.com/en/news/296491180.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**