Tencent shares drop after a revenue miss and and a warning about margins

Key Points
  • Hong Kong-listed Tencent shares fell 4.6 percent in morning trade.
  • On Wednesday, the technology firm reported a 98 percent jump in quarterly net profit.
Tencent's headquarters in Shenzhen, China, pictured in August 2016.
Bloomberg | Getty Images

Shares of China's Tencent Holdings fell as much as 4.6 percent on Thursday after the Hong Kong-listed internet giant's results announced a day earlier showed that revenue missed estimates and it warned that planned investments may hurt margins.

Tencent shares fell to as low as 441.4 Hong Kong dollars ($56.26) in early trading. The company on Wednesday reported a 98 percent jump in quarterly net profit, beating estimates, though revenues rose slower than expected at 51 percent.

Company president Martin Lau warned at a briefing on Wednesday that the company plans to invest "aggressively" in areas including video and payment, which may hurt margins.

With a market capitalization of around $535 billion, Tencent is Asia's most valuable listed company and the world No.5 behind Apple, Alphabet, and Microsoft.