$TENCENT(00700)$ Headline: Why Tencent’s "Revenue Miss" is Actually a Major Win 🚀 Don't let the headline "Revenue Miss" fool you. The real story in Tencent's Q1 earnings is the gross margin expansion (56% to 57%) and the 11% jump in adjusted net profit. Here is why this is a massive green flag: • Operating Leverage in Action: Profit growth (+11%) is outpacing revenue growth (+9%). This means Tencent is becoming highly efficient, extracting more profit out of every dollar earned. • The AI Myth-Busted: Bears argued that massive AI hardware costs would destroy big tech margins. Tencent just proved them wrong—their high-margin business mix (likely ad tech and cloud optimizations) fully offset rising depreciation costs. • The Verdict: Efficiency