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Market Chatter: Alibaba Group, Tencent Earnings to Slow Over Mounting AI Costs

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-- Alibaba Group (HKG:9988) and Tencent Holdings (HKG:0700) could post slower earnings growth in their upcoming results next week as artificial intelligence costs rise and domestic competition intensifies, Bloomberg said in an earnings preview Friday.

Tencent's full-year earnings growth is expected to slow to the low-teen percentage range as AI investments double, while Alibaba faces pressure from China's soft consumption outlook, Bloomberg reported, citing Bloomberg Intelligence.

Bloomberg Intelligence also said stronger cloud-computing demand is unlikely to provide a meaningful earnings boost for either company in 2026 because of intense competition and margin pressure in the segment.

Both firms are due to announce their result on Wednesday next week.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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