Citigroup labeled the July 22 plunge in Tencent Holdings’ stock an overreaction in a report issued July 23, 2026. The stock fell more than 7% during the previous session.
Analysts attributed the sharp decline to market sector rotation and concerns regarding AI investment profitability. Citi also identified a market misinterpretation of recent gaming revenue data.
The bank reiterated its Buy rating and maintained a target price of HK$758. Citi clarified that tracked gaming data showed a seasonal pullback rather than final reported revenue.
Domestic gaming revenue is projected to grow 8% year-over-year in the second quarter. This growth forecast relies on deferred revenue and strong performance in PC gaming.