-- 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.
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