Goldman Cuts Tencent Target Amid AI Investment

Tencent Holdings stock fell on September 23, 2026, after Goldman Sachs cut its target price for the company by HKD 20 to HKD 650.

The reduction represents a 2.99 percent decrease from the previous target and was attributed to higher artificial-intelligence investment and the effects of recent equity financing, according to ET Net.

In the same session, Tencent's shares traded at HKD 425.80 on the Hong Kong Stock Exchange, down 1.75 percent, and later reached HKD 442.00, down 2.13 percent at 2:00 p.m. Hong Kong time.

The company's second-quarter earnings provided a counterweight to the target cut, with Trading Economics listing Tencent's fiscal second quarter of 2026 at CNY 204.79 billion in sales revenue and CNY 7.43 earnings per share, beating consensus EPS of CNY 7.39.

Tencent also repurchased 223,000 shares on September 22, with transaction prices ranging from HKD 442.80 to HKD 450.80, providing a measurable offset to the financing concern cited in the Goldman Sachs update.