Tencent (TCEHY) just dropped its Q3 2024 numbers, and investors should take note, driving pre-market up by 2%. Revenue climbed 8% year-over-year to RMB167.2 billion ($23.9 billion), with non-IFRS operating profit spiking 19%. The driving force? Gaming is thriving, thanks to blockbuster titles like VALORANT (up 30% globally) and the launch of Delta Force. But Tencent isn't just a gaming powerhouseit's doubling down on AI, integrating smarter solutions across marketing, cloud, and operations to squeeze out more value. These AI upgrades aren't just shiny tech; they're boosting efficiency and results where it counts.

• Warning! GuruFocus has detected 3 Warning Signs with TCEHY.

Look beyond the headlines, and you'll see Tencent's ecosystem flexing its muscles. Mini Programs raked in over RMB2 trillion in GMV, fueled by better coverage in everyday use cases like food delivery and EV charging. Meanwhile, Tencent's streaming services are quietly pulling in massive growthmusic subscriptions jumped 16%, and video subs edged up 6%, proving that great content and user experience still win. The Weixin ecosystem is also evolving fast, with upgraded search and e-commerce solutions creating seamless opportunities for merchants to reach customers.

Financially, Tencent is playing it smart. Its RMB95.5 billion ($13.6 billion) net cash position gives it breathing room, while share buybacks totaling HKD35.9 billion in the Hong Kong Stock Exchange signal confidence in its future. Add to that its strategic AI investments and international gaming dominance, and you've got a company firing on all cylinders. For long-term investors, Tencent's blend of innovation and operational efficiency makes it a standout in the tech space. Keep this one on your radar.

This article first appeared on GuruFocus.