Alibaba Falters Again While Tencent Builds on Its Recovery

(Bloomberg) — 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 write-down 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. U.S.-held shares were down more than 7% in early New York trading.