Tencent Holdings once fell over 2% during intraday trading today, touching its lowest intraday level in over two weeks. This followed the company's second-quarter earnings report, which showed that its hashrate procurement significantly pushed up capital expenditure to RMB 52.78 billion, leading to a rare negative quarterly free cash flow. Morgan Stanley subsequently stated that Tencent's solid core fundamentals were offset by upfront AI investments, expecting the company's earnings to remain flat from the second half of the year to 2027, and lowered the company's target price by over 15% to HKD 550, while maintaining an Overweight rating.