Tencent Holdings Ltd. (OTC:TCEHY) is among the most fantastic stocks every investor should pay attention to. In a November 7 report, Bloomberg said that sustained momentum in AI development should help the company to report strong earnings for the third quarter. Moreover, results from Tencent and its peers were expected to indicate progress and standing in the AI landscape amid the rising rivalry with the U.S.
On November 13, the company reported better-than-expected results with revenue surging 15% year-over-year to RMB 192.9 billion, and operating profit rising 19% to RMB 63.6 billion. Both of these came in ahead of the consensus of RMB 189.2 billion and RMB 58.01 billion, as per LSEG data, respectively. As was expected, investments in AI supported the topline growth with strong performance in gaming and marketing services, driven by AI-powered gaming engagement and ad targeting. Operating margin also improved by 100 basis points YoY to 33% (on IFRS basis). With strong topline growth and improved margins, EPS rose 20% to RMB 6.779.
Another development that is gaining traction amid the ongoing COP30 climate summit in Brazil is Tencent’s preparation for an alliance of carbon credit buyers. On Wednesday, November 12, Bloomberg reported that the company is in discussions with mostly Asian firms from the manufacturing, technology, and consumer sectors to create a consortium that can buy carbon credits.
Ella Wang, a senior program director at Tencent, said that the company needs to purchase spot and forward carbon credits to offset its emissions and to expedite its target to become carbon neutral. The alliance described above would create more demand. Ella further elaborated:
“We believe it would send a signal to the market and encourage more potential suppliers, especially in the Global South countries.” She also said, “Such an alliance would benefit the companies in many respects, including helping with compliance and technology adoption”.
Tencent Holdings Ltd. (OTC:TCEHY) is a leading Chinese multinational technology conglomerate specializing in internet-related services, entertainment, and artificial intelligence.
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Disclosure: None. This article is originally published at Insider Monkey.