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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.

While we acknowledge the potential of TCEHY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  13 Best Stocks to Buy According to Citadel LLC and Goldman Sachs Defense Stocks: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

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Apple is stepping up its succession planning efforts, as it prepares for Tim Cook to step down as chief executive as soon as next year.

Several people familiar with discussions inside the tech group told the Financial Times that its board and senior executives have recently intensified preparations for Cook to hand over the reins at the $4tn company after more than 14 years.

John Ternus, Apple’s senior vice-president of hardware engineering, is widely seen as Cook’s most likely successor, although no final decisions have been made, these people said.

People close to Apple say the long-planned transition is not related to the company’s current performance, ahead of what is expected to be a blockbuster end-of-year sales period for the iPhone.

Apple declined to comment.

The company is unlikely to name a new CEO before its next earnings report in late January, which covers the critical holiday period.

An announcement early in the year would give its new leadership team time to settle in ahead of its big annual keynote events, its developer conference in June and its iPhone launch in September, the people said.

These people said that although preparations have intensified, the timing of any announcement could change.

Cook, Apple’s former operations chief who turned 65 this month, has led the company since 2011 when he took over the role from its co-founder Steve Jobs, who died months later. During Cook’s tenure, the Big Tech group’s market capitalisation has surged from about $350bn in 2011 to $4tn today.

Apple’s shares are trading close to an all-time high after strong results last month, although its stock-price rise of roughly 12 per cent this year lags behind its Big Tech rivals Alphabet, Nvidia and Microsoft, whose valuations have been propelled by Wall Street’s exuberance about artificial intelligence.

Apple has had a number of high-profile changes this year among its top executive team. Longtime Cook confidante, chief financial officer Luca Maestri, stepped back from his role at the start of this year. Jeff Williams, a Cook protégé, announced he was stepping down as chief operating officer in July.

Appointing Ternus would put an executive from the hardware side of the company back in charge at the iPhone maker at a time when Apple has struggled to break into new product categories and keep up with its Silicon Valley rivals in AI.

Cook has voiced his preference for an internal candidate to be chosen as his replacement, saying the company has “very detailed succession plans”.

“I love it there and I can’t envision my life without being there so I’ll be there a while,” he told singer Dua Lipa on her podcast in November 2023.

• Ascletis Pharma announced new preclinical and Phase Ib clinical results for its portfolio of next-generation obesity drug candidates, including ASC36, ASC35, and ASC30, developed using its proprietary AISBDD and ULAP technologies.

• A key highlight is the plan to submit a US Investigational New Drug Application in 2026 for a co-formulated monthly therapy that showed greater weight reduction in animal models compared to existing treatments.

• We’ll explore how Ascletis Pharma’s advancement toward a US IND submission for its obesity treatment candidates could reshape its investment narrative.

AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part – they are all under $10b in market cap – there’s still time to get in early.

For investors considering Ascletis Pharma, the core belief hinges on the company’s ability to break into the high-growth obesity treatment market with its new-generation drug candidates. The recent disclosure of strong preclinical and Phase Ib data for ASC36, ASC35, and ASC30, along with a planned US IND application for a co-formulated monthly obesity therapy, marks a potentially significant catalyst that could refresh sentiment and drive near-term share price momentum. This news adds clear visibility to the clinical pipeline, which has repeatedly faced skepticism due to historic unprofitability and regulatory hurdles. While the obesity portfolio’s progress could accelerate prospects and broaden Ascletis’ market appeal, key risks remain, especially related to clinical trial outcomes and the heavy investment demands required before potential commercialisation. Materially, these developments could shift attention from past earnings volatility toward future pipeline milestones as primary value drivers.

On the flip side, regulatory outcomes and patent risks remain critical concerns for shareholders. Upon reviewing our latest valuation report, Ascletis Pharma’s share price might be too optimistic.

The Simply Wall St Community offered one fair value estimate before this latest news event, suggesting very little variation in opinions at that time. While clinical trial advancements have improved pipeline visibility, actual commercial success depends on regulatory approvals and market uptake. Explore other views that may broaden your perspective on what could shape the company’s future.

Explore another fair value estimate on Ascletis Pharma – why the stock might be worth less than half the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 1672.HK.

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