The key debate point is whether 2026 will be a year of share buybacks or increased capital expenditures. Today they gave us the answer - Oriental Meta is preparing to follow Meta's playbook. I believe this is bearish in the short term but bullish in the medium to long term (if the capital expenditures are used to buy GPUs for Tencent Cloud). The short-term bearish impact is easy to understand too - a lot of people, including myself, were expecting Tencent to launch buybacks after the earnings report.
Tencent's earnings report today was unremarkable.
The key debate point is whether 2026 will be a year of share buybacks or increased capital expenditures.
Today they gave us the answer - Oriental Meta is preparing to follow Meta's playbook.
I believe this is bearish in the short term but bullish in the medium to long term (if the capital expenditures are used to buy GPUs for Tencent Cloud).
The short-term bearish impact is easy to understand too - a lot of people, including myself, were expecting Tencent to launch buybacks after the earnings report.