Alibaba, Tencent Shares Rise Despite Revenue Misses as Investors Eye AI Revenue
Alibaba and Tencent shares rose after both companies missed revenue estimates, as investors looked past the top-line shortfall and focused on how quickly heavy artificial-intelligence spending can turn into revenue. Alibaba is emphasizing sales of scarce computing capacity, while Tencent is prioritizing internal AI deployment, highlighting different approaches to monetizing the technology.
The market reaction marked a shift from the earlier focus on disappointing sales and the pressure on both companies to show returns from their AI push. Alibaba’s latest results showed weaker profit and cash flow, though AI and cloud growth helped support sentiment, while Tencent said first-quarter profit jumped 21% even as AI spending exceeded $4.4 billion; earlier reporting showed its March-quarter revenue missed estimates as core businesses such as games and advertising showed signs of age.
From the sources (6 posts)
@dnystedtRT @NikkeiAsia: Tencent and Alibaba sales disappoint as AI monetization efforts fall short
@nikkeiasiaTencent and Alibaba sales disappoint as AI monetization efforts fall short
@businessTencent’s March-quarter revenue missed estimates, underscoring the urgency around its costly AI pivot while core businesses like games and advertising show signs of age
@poezhao0605Alibaba and Tencent reported earnings on the same day. Both missed revenue estimates. Both stocks rose. The reason is simple: investors are no longer only asking how much China’s tech giants spend on AI. They are asking when AI spending t
@thestreetAlibaba’s earnings showed weaker profit and cash flow, but its AI and cloud growth gave investors a reason to look past the near-term hit.
@yicaichinaTencent's First-Quarter Profit Jumps 21% While AI Spending Exceeds USD4.4 Billion @TencentGlobal