Should I buy Tencent stock in 2025?

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At HelloSafe, our expert has been monitoring Tencent's performance for over three years. Every month, thousands of users in Singapore rely on us to analyze market trends and identify the best investment opportunities. Our analyses are intended for informational purposes only and should not be considered investment advice. In line with our ethical charter, we have never received, and will never receive, any compensation from Tencent.

What is Tencent?

How much is Tencent stock?

The price of Tencent stock is rising this week. As of now, Tencent shares trade at $64.39 USD (HK$494.60), representing a 24-hour increase of 3.04% and a weekly gain of 0.69%. The company’s market capitalization stands at $592.87 billion USD, with an average 3-month daily volume of 4.99 million shares.

Tencent’s low beta suggests relatively low volatility. This combination of stable trading and strong business fundamentals highlights Tencent’s potential as a resilient opportunity for Singapore investors.

Our full analysis on Tencent stock

We have thoroughly reviewed Tencent Holdings’ latest financial releases, incorporating its solid FY2024 performance, technical indicators, and the stock’s substantial appreciation over the past three years. By fusing real-time market data, advanced technical signals, and comparative sector analysis—each filtered through our proprietary algorithms—we aim to deliver an informed, forward-looking perspective for discerning Singapore investors. So, why might Tencent stock once again become a strategic entry point into the Asian technology sector in 2025?

Recent Performance and Market Context

Stock Price Momentum
Tencent’s share price has demonstrated remarkable resilience and growth—currently trading at $64.39 USD (HK$494.60), representing a 39.2% increase year-on-year and an impressive 21.1% rise over the last six months. The stock has recently reclaimed higher ground following a swift +3.0% single-day gain, emphasizing robust investor interest and a decisive return of positive sentiment after a consolidation period in late 2023.

Key Catalysts in 2024
Several events have fueled this rally:

• Strong financial outperformance: FY2024 and Q4 earnings both exceeded consensus, with Q4 net income up a massive 90% YoY, driven by powerful execution across gaming, advertising, and fintech.
• Shareholder rewards: A 32% increase in dividends and HK$112 billion in share repurchases last year, with an additional HK$80 billion committed for 2025, underpins management’s confidence.
• Capital allocation optimism: Tencent’s capex surged to RMB 76.8 billion in 2024, up 221%, focused on AI expansion and infrastructure, reinforcing future growth trajectories.

Sector Tailwinds & Macro Backdrop
The Asian technology sector is witnessing renewed global interest, buoyed by a weak dollar, bottoming valuations, and the clear acceleration of AI adoption. Beijing’s incremental easing of regulatory pressure, combined with a pivot towards quality internet sector growth, further strengthens the risk/reward profile for leading Chinese tech equities. In this favorable climate, Tencent stands as a unique blue-chip growth compounder with proven defensive qualities.

Technical Analysis

Indicators Signal Bullish Structure
Tencent’s technical setup is compelling:

• The stock is firmly above all major moving averages—20, 50, 100, and 200-day—signaling well-established bullish momentum.
• RSI (14-day): At 66.7, this reflects constructive buying momentum; although modestly overbought, it typically aligns with strong uptrends rather than imminent reversals when sustained.
• MACD: The reading of 19.8 is notably positive, and the bullish crossover remains intact, confirming ongoing accumulation.

Support and Resistance Landscape
Support is evident near $63.25 and reinforced at the rising 50- and 100-day MAs, suggesting buyers are keen to step in well above prior lows. The next overhead objectives are $66.10 (first technical resistance), then $68.22 and the 52-week high at $71.82. The volume profile signals that any pullback is likely to be orderly, as supply is thinning.

Short/Medium-Term Momentum
The current structure is favorable for further upside, especially as past breakouts above the 20-day MA have repeatedly resulted in renewed rallies. Even with RSI near overbought, historical patterns in mega-cap tech show that surges in volume and positive news flow can carry the momentum further before a meaningful pause. This creates an advantageous window for accumulation.

Fundamental Analysis

Revenue and Profitability Strength
Tencent’s FY2024 report confirms broad-based resilience:

• Revenue: RMB 660.3 billion ($91.8 billion), up 8% YoY, notably outpacing many global peers.
• Net Income: RMB 194.1 billion ($27.0 billion), up a striking 68% YoY.
• Operating Profit: Grew 30%, with healthy margins as cost discipline and scalability play out.

All major segments outperformed:

• Value-Added Services: Gaming (both domestic and international) rose double digits; flagship franchises such as Honour of Kings, PUBG MOBILE, and Brawl Stars continued to cash in on global and regional gaming adoption trends.
• Advertising: Q4 ad revenues sprinted 17% higher, as Video Accounts and Mini Programs tapped new monetization engines.
• FinTech and Business Services: Despite macro headwinds, delivered positive growth—solidifying Tencent’s all-weather attributes.

Valuation—Attractive Relative to Growth

• P/E (TTM): 22.67; Forward P/E: 17.57—highly compelling for a business delivering 68% bottom-line growth, especially in comparison to global tech leaders often trading at higher multiples for slower growth.
• Price/Sales: 6.62 and Price/Book: 4.35—both ratios situate Tencent favorably within the Asian mega-cap tech landscape, suggesting the market has yet to fully price in the company’s next phase of AI-led expansion.

Structural Advantage
Tencent dominates China’s social and digital ecosystem:

• Over 1 billion active Weixin/WeChat users—essential infrastructure for Chinese digital life.
• Leading positions in music and video streaming, gaming, and emerging fintech.
• Deep AI integration across cloud, advertising, and consumer apps—driven by a surging AI capex outlay, with HunYuan Foundation Model poised to bolster both user engagement and enterprise adoption.

Volume and Liquidity

Healthy Volume—A Signal of Institutional Confidence
Tencent’s three-month average daily turnover sits at 4.99 million shares, among the highest in the Hong Kong market, reflecting robust institutional participation. Cross-border inflows remain strong, particularly from Singapore and broader ASEAN investors seeking regional AI champions.

Float and Valuation Dynamics
With substantial buybacks tightening free float and the company’s disciplined management of share issuance, the stage is set for upward price discovery should new catalysts emerge. Sustained liquidity ensures efficient portfolio rebalancing for both retail and institutional investors, bolstering Tencent’s appeal as a core regional tech holding.

Catalysts and Positive Outlook

AI Acceleration: The Defining Growth Vector
Tencent’s prioritization of AI is more than a headline—it is a full-spectrum transformation:

• 2025 AI capex is forecasted to rise to a “low teens” percentage of sales, signaling unwavering strategic commitment.
• Early AI deployment in advertising, content recommendations, and enterprise services is already unlocking incremental monetization, seen in recent ad segment gains.
• The HunYuan model continues to push the boundary—poised to lift ecosystem stickiness and revenue per user across Weixin, gaming, and the cloud.

Gaming Franchise Expansion
The company’s gaming DNA remains a formidable competitive moat—Tencent grew its “evergreen” titles and delivered record momentum in both domestic and international markets. Constant pipeline innovation (14 such titles in 2024, up from 12 a year ago) signals continued revenue durability and new hit potential.

Ecosystem Growth and User Engagement
Tencent is extending its lead in high-growth digital segments:

• China’s #1 music streaming provider (121 million paid subscribers) and long-form video (113 million).
• Video Accounts and Mini Programs are speeding up the engagement flywheel, translating into rising ad ARPU and superior monetization curves.

Shareholder Returns as a Confidence Anchor
Increased dividends (+32%), large ongoing buybacks, and near-$58 billion net cash position, all reinforce Tencent’s ability to withstand shocks and actively reward patient capital—a key differentiator in a sometimes-volatile region.

Favorable Regulatory and Macro Trends
Beijing’s calibrated approach to platform regulation, plus improving demand signals from Chinese consumers post-reopening, point to a supportive macro context. AI is emerging as the key policy focus, increasing the strategic value of leaders like Tencent and propping up sector multiples.

Investment Strategies

Strategic Entry Points Across Timeframes

• Short-Term: Technical momentum remains robust; with the stock above all moving averages and supported by positive earnings surprise, traders may find further near-term upside. Favorable seasonal factors (e.g., ex-dividend in May and increased buybacks) could offer additional catalysts.
• Medium-Term: The AI deployment curve, combined with an accelerating international gaming franchise, justifies multiple re-rating potential. Tencent’s attractive forward valuation (forward P/E ~17.6 and a PEG below 1) underpins a positive case for holding, especially as catalysts approach.
• Long-Term: For structurally minded investors, Tencent’s entrenched digital ecosystem, relentless investment in R&D, and deep pockets for innovation provide ongoing compounding opportunities. The analyst consensus of $89.64 USD (~30% upside from current levels) frames Tencent as a rare “growth-at-a-reasonable-price” vehicle in Asia’s world-class tech sector.

Tencent appears ideally positioned at the intersection of a technical breakout and a fundamental inflection, with both structural and tactical value converging.

Is it the Right Time to Buy Tencent?

Summary of Strengths

• Exceptional fundamentals: Double-digit growth in revenues and net income, backed by record profit margins and cash flow.
• Convincing technicals: Strong price momentum well above critical support; volume patterns corroborate institutional accumulation.
• Attractive valuation: Forward P/E and PEG suggest the stock is underappreciated relative to the opportunity set, especially amid sector re-ratings.
• Powerful catalysts: Unmatched AI and gaming growth vectors, ecosystem fortification, and visible shareholder return initiatives.
• Supportive market context: Tailwinds from shifting regulatory stance, strengthening Chinese consumption, and global tech flows.

Optimistic Projection
All the data reinforce the view that Tencent may be entering a new bullish phase—one where innovation, operational strength, and capital discipline converge. For both tactical and strategic investors, the fundamentals justify renewed interest and the current technical foundation seems to represent an excellent opportunity.

In sum, Tencent’s robust blend of financial health, dynamic product innovation, market dominance, and improving sector backdrop combine to make a compelling case for serious consideration as a core holding within any forward-looking technology portfolio. For investors seeking exposure to Asia’s digital transformation, Tencent stands out as an opportunity of conviction and scale.

How to buy Tencent stock in Singapore?

Buying Tencent stock online is a simple and secure process for Singapore-based investors when using a regulated brokerage platform. You have two main options: purchasing the stock directly (spot buying), or gaining exposure via Contracts for Difference (CFDs) that let you trade on price movements with leverage. Both avenues are accessible online, and regulated brokers ensure safe and transparent transactions. Each method fits a different investment profile, and fees can vary—so making the right choice starts with a thorough broker comparison, which you’ll find further down the page.

Cash buying

A cash purchase means buying Tencent shares outright, making you a direct shareholder. In Singapore, this typically involves a fixed commission per order, often around SGD 5–15, depending on the broker. Your shares will be held securely in your brokerage account, and you are eligible for dividends.

Concrete example

If the Tencent share price is HKD 494.60 (around SGD 85), and you invest SGD 1,000 (assuming an SGD/HKD rate for illustration), you can buy about 11 shares (1,000 / 85 = 11.76), allowing for a brokerage fee of approximately SGD 5.

✔️ Gain scenario

If Tencent’s price rises by 10%, your 11 shares are now worth SGD 1,100. Result: +SGD 100 gross gain, or +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on Tencent's price movements without owning the shares themselves. CFDs can be used for both rising and falling markets, and you can amplify your exposure using leverage (for example, 5x). Fees typically include a spread (the difference between buy and sell prices) and overnight financing costs if you hold the position for more than a day.

Example

You open a CFD position on Tencent with SGD 1,000 and select 5x leverage, giving you market exposure of SGD 5,000.

✔️ Gain scenario

If the stock rises by 8%, your position gains 8% x 5 = 40%. Result: +SGD 400 gain on a bet of SGD 1,000 (excluding spreads and overnight fees).

Final advice

Before investing, it’s important to compare brokerage fees, platforms, and product conditions to find the option that best fits your financial goals and investment experience. The optimal method—spot buying or CFD trading—will depend on whether you seek long-term ownership or short-term trading opportunities. To assist your choice, a detailed broker comparison is available further down the page. Investing in Tencent can be accessible and rewarding when approached with the right information and the right broker.

Our 7 tips for buying Tencent stock

The latest news about Tencent

Tencent stock posts solid 7-day gains and stays in a strong uptrend above key technical levels.
The company's shares advanced by 0.69% over the past week, continuing a robust momentum that has seen a 39% climb over the past 12 months and a 21% rise in the last six months. Technical indicators remain positive, with the stock price trading above its 20-, 50-, 100-, and 200-day moving averages, and the MACD reinforcing bullish sentiment. Notably, the Relative Strength Index (RSI) stands at 66.69, reflecting strong but not extreme buying pressure. These signals suggest continued market confidence, with potential further upside—the 1-year target price for Tencent, set by analysts, implies around 30% appreciation from current levels. Singapore investors, who often access Tencent via the HKEX or through regional ETFs, have responded favorably, mirroring broader bullish sentiment across Asia’s major financial hubs.

Tencent boosts AI and gaming investments, reinforcing regional relevance and growth prospects.
Tencent has sharply increased its capital expenditure, directing a significant portion toward AI infrastructure, with 2024 capex soaring 221% year-on-year and further growth planned for 2025. The group reorganized its AI teams and is ramping up innovation around its HunYuan Foundation Model and adjacent verticals. Growth in gaming—both domestic and international—remains robust, with “evergreen” titles and international hits such as PUBG MOBILE contributing to 23% and 15% YoY revenue surges, respectively. Tencent’s persistent push in these sectors has a direct bearing for Singapore’s financial professionals, given the city-state’s ambition to establish itself as a regional AI hub and the central role that e-sports and digital entertainment play in the local tech investment landscape.

Shareholder returns are surging on dividend and buyback commitments, supporting institutional confidence.
Tencent lifted its annual dividend by 32% to HK$4.50 per share for 2025 and has executed significant share repurchases, buying back roughly HK$112 billion worth of shares in 2024. The firm has committed to at least HK$80 billion in further buybacks this year, signaling robust free cash flow and management’s focus on enhancing shareholder value. For Singapore-based institutional investors and sovereign wealth funds like GIC and Temasek, such improvements in capital returns are highly attractive, underscoring Tencent’s place in the regional portfolios that seek both capital appreciation and income stability.

Tencent outperformed analyst expectations with Q4 2024 earnings and continued management strength.
Recent earnings releases highlighted a Q4 2024 revenue of RMB 172.4 billion (+11% YoY) and net income surging by 90% YoY, both exceeding consensus expectations. The company continues to demonstrate operational excellence under CEO Ma Huateng, with particularly notable performance in gaming, online advertising, and fintech services. Tencent’s high cash reserves bolster its investment capacity and resilience. This consistent delivery on results and leadership continuity have been well received by regional analysts and financial professionals in Singapore, who value operational predictability amid an often-volatile Chinese tech landscape.

AI-driven digital advertising and fintech expansion position Tencent for further ASEAN growth.
Tencent’s integration of advanced AI features into its advertising platform and digital content ecosystem—such as Video Accounts and Weixin Search—has yielded a 17% YoY growth in advertising revenue for Q4. Fintech and business services revenue has also continued to expand, with user engagement and transaction volumes climbing. For Singapore, where the fintech ecosystem is among Asia’s most dynamic and where local tech giants and start-ups look to China’s leaders for strategic direction, Tencent’s advances in AI monetization and digital finance hold direct relevance for ongoing cross-border partnerships and technology transfer.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.