Citi: Tencent's Latest Selloff Likely an Overreaction

Dow Jones

Jul 23

Tencent's Wednesday selloff is an overreaction after a decent rebound in recent weeks, Citi analysts say in a research note. Despite 2Q gaming grossing likely slowing down due to soft seasonality, they note that deferred revenue recognition from previous quarters should support revenue for the period.

Citi expects Tencent's 2Q domestic games revenue to decline 3.9% on quarter but rise 8% on year. Short-term fluctuations in gaming grossing and revenue shouldn't overshadow the fundamental strength of Tencent's diversified and globalized gaming business, which underpins steady annual growth, they add.

Citi retains a buy rating on Tencent and suggests the selloff presents a buying opportunity.

As of press time, Tencent's stock price had risen by more than 1.7% during trading.

(END) Dow Jones Newswires

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Despite 2Q gaming grossing likely slowing down due to soft seasonality, they note that deferred revenue recognition from previous quarters should support revenue for the period. </p><p style=\"text-align: left;\">Citi expects Tencent&#39;s 2Q domestic games revenue to decline 3.9% on quarter but rise 8% on year. 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Despite 2Q gaming grossing likely slowing down due to soft seasonality, they note that deferred revenue recognition from previous quarters should support revenue for the period. </p><p style=\"text-align: left;\">Citi expects Tencent&#39;s 2Q domestic games revenue to decline 3.9% on quarter but rise 8% on year. Short-term fluctuations in gaming grossing and revenue shouldn&#39;t overshadow the fundamental strength of Tencent&#39;s diversified and globalized gaming business, which underpins steady annual growth, they add. </p><p style=\"text-align: left;\">Citi retains a buy rating on Tencent and suggests the selloff presents a buying opportunity. </p><p style=\"text-align: left;\">As of press time, Tencent&#39;s stock price had risen by more than 1.7% during trading.</p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/db71c3ed7ad4c6c76f82bad0f5e4312e\" data-align=\"center\" data-image-type=\"kline\" tg-width=\"560\" tg-height=\"240\"/><span></span></p><p style=\"text-align: left;\">(END) Dow Jones Newswires</p><p style=\"text-align: left;\"></p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TCEHY","symbol_name":"腾讯控股ADR","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2653790636","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2653790636","pubTimestamp":1784771520,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0152 GMT - Tencent's Wednesday selloff is an overreaction after a decent rebound in recent weeks, Citi analysts say in a research note. Despite 2Q gaming grossing likely slowing down due to soft seasonality, they note that deferred revenue recognition from previous quarters should support revenue for the period. Citi expects Tencent's 2Q domestic games revenue to decline 3.9% on quarter but rise 8% on year. Short-term fluctuations in gaming grossing and revenue shouldn't overshadow the fundamental strength of Tencent's diversified and globalized gaming business, which underpins steady annual growth, they add. Citi retains a buy rating on Tencent and suggests the selloff presents a buying opportunity. Shares are up 0.9% at 445.00 Hong Kong dollars.  Dow Jones NewswiresJuly 22, 2026 21:52 ET Copyright  2026 Dow Jones & Company, Inc.","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"TCEHY":"腾讯控股ADR","00700":"腾讯控股"},"translate_title":"花旗：腾讯最近的抛售可能是反应过度","themeId":null,"isJumpTheme":false,"ttsUrl":"https://static.tigerbbs.com/36fdfc7e8a919c6bb1d9c4e038b94440","symbols_score_info":{"00700":1.96,"TCEHY":1.96},"content_text":"Tencent's Wednesday selloff is an overreaction after a decent rebound in recent weeks, Citi analysts say in a research note. Despite 2Q gaming grossing likely slowing down due to soft seasonality, they note that deferred revenue recognition from previous quarters should support revenue for the period. Citi expects Tencent's 2Q domestic games revenue to decline 3.9% on quarter but rise 8% on year. Short-term fluctuations in gaming grossing and revenue shouldn't overshadow the fundamental strength of Tencent's diversified and globalized gaming business, which underpins steady annual growth, they add. Citi retains a buy rating on Tencent and suggests the selloff presents a buying opportunity. As of press time, Tencent's stock price had risen by more than 1.7% during trading.(END) Dow Jones Newswires","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":true,"need_login_tip":false,"code":"91000000","status":"200"}}}