Tencent’s current undervaluation is likely to be temporary.

Golden Finance News reported that Bernstein analysts said in a report that Tencent’s current undervaluation should be temporary. They said the company’s lackluster stock valuation reflects a range of concerns, including the absence of new blockbuster games and higher costs associated with AI investment. The market is worried that the rollout of AI will mean the company may have to bear massive computing costs, while monetization from consumer AI remains minimal. However, they said that despite timing lag, monetization growth will follow. Regarding its gaming business, Bernstein still expects Tencent’s performance to outperform its peers. (Jin Shi)
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