Changes in Hong Kong stocks | Tencent Holdings (00700) fell nearly 3% intraday. Tencent will produce results next week, profits may be dragged down by accelerated AI investment

The Zhitong Finance App learned that Tencent Holdings (00700) fell nearly 3% intraday. As of press release, it decreased by 2.39% to HK$407.8, with a turnover of HK$7.124 billion.

According to the news, Tencent plans to disclose its three-quarter report on November 18. Leon said that Tencent is speeding up AI applications, and WorkBuddy and “Xiaowei” are expected to become leading enterprises and consumer intelligence, and become new growth drivers; however, profits in the third quarter may be dragged down by accelerated AI investment, especially model training and WorkBuddy penetration.

Goldman Sachs pointed out that the high level of capital expenditure in CapEx and its squeeze on free cash flow FCF is at the core of the current market debate. AI Capex, a major cloud vendor, remained at an all-time high in the third quarter. The bank estimated that Tencent would reach 66 billion yuan in a single quarter. The market will focus on how management can maintain a healthy FCF and repurchase pace while ensuring the expansion of computing power.