Alibaba Falters Again While Tencent Builds on Its Recovery
- Shares slide as core business manage just single-digit growth
- Alibaba is in the middle of a longer-term turnaround effort
An Alibaba office in Beijing.
Source: Bloomberg
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Tencent Holdings Ltd. reported a far better-than-projected 62% surge in earnings while rival Alibaba Group Holding Ltd.’s profit plunged, highlighting the growing divergence between China’s twin internet powerhouses during a rocky post-Covid recovery.
Alibaba’s net income tumbled 86% after an unexplained writedown for losses in its publicly traded holdings, which include companies from AI firm SenseTime Group Inc. to brick-and-mortar chain Sun Art Retail Group Ltd. That came on top of heightened spending to ward off up-and-coming competitors. US-held shares were down more than 7% at 10:15 a.m. in New York.