The Motley Foolยท2024-11-15 00:02Core Viewpoint - Tencent Holdings demonstrated strong performance in a generally declining stock market, with shares increasing over 3% following the release of its third-quarter results, contrasting with a 0.6% dip in the S&P 500 index [1] Financial Performance - Tencent reported third-quarter revenue growth of 8% year over year, reaching over 167 billion yuan ($23.1 billion) [2] - The company's IFRS net income surged by 47% to 53.2 billion yuan ($7.4 billion), exceeding analyst expectations [2][3] Revenue Drivers - The domestic gaming business contributed significantly to revenue growth, with a 14% increase, generating over 37 billion yuan ($5.1 billion). This growth was bolstered by the launch of the new game, Black Myth: Wukong [4] Investment Outlook - Despite the positive quarterly results, Tencent's substantial investments in artificial intelligence (AI) have not yet yielded significant revenue, indicating that investors may need to wait several quarters for these investments to impact earnings meaningfully [5] - Overall, the quarter was favorable for Tencent, especially in light of the sluggish domestic economy affecting other sectors, although the slow progress in AI development may raise concerns if it does not accelerate soon [6]