<div id="readability-page-1">Tencent Holdings and Alibaba Group Holding are set to report quarterly earnings this week, against a backdrop of an artificial intelligence boom that is reshaping the global economy and fuelling a frenzy in China around open-source AI agents such as OpenClaw. The South China Morning Post examines market expectations for their results and the key themes investors will be watching. What are the expectations for top line and bottom line performances? Shenzhen-based Tencent, operator of China’s largest social media platform and the world’s biggest video gaming business by revenue, is expected to report results on Wednesday after the market close. The company is forecast to post a 13 per cent increase in fourth-quarter revenue to 194 billion yuan (US$28.2 billion), according to a Bloomberg poll of 39 analysts. Profit is expected to reach 55 billion yuan on an IFRS basis, up 7 per cent year on year. Hangzhou-based Alibaba, one of China’s largest e-commerce and AI companies, will report its quarterly results after the Hong Kong market closes on Thursday. Analysts polled by Bloomberg expect revenue of 289.8 billion yuan, up 3.4 per cent year on year. Alibaba owns the South China Morning Post. Adjusted earnings per share are forecast at 12.35 yuan, a sharp increase from 4.36 yuan in the previous quarter. What are the key focuses in Tencent’s earnings? Investors are likely to focus on whether Tencent’s investments in AI are translating into tangible gains, while also watching capital expenditure for signs of a more aggressive push into the sector. Updates across its gaming, advertising and cloud businesses will also be closely scrutinised. Backed by the strength of its WeChat ecosystem, Tencent has been described by Morgan Stanley analysts as a “late starter but fast follower” in AI development. “The bulk of the market’s attention will be on Tencent’s AI strategy – particularly how management frames its embedded-AI vision for WeChat and the progress of its Hunyuan models,” said Ivan Su, senior equity analyst at Morningstar. Su added that the company’s 2026 games pipeline, share buy-back plans and any signals on China’s regulatory environment would also be in focus. Tencent has recently stepped up efforts in AI agents, launching a series of OpenClaw-like products. Last week, it introduced QClaw, an AI assistant integrated with WeChat, following the release of its own OpenClaw-style platform, WorkBuddy, which is designed to be compatible with OpenClaw skills.  Its gaming business – which typically accounts for about one-third of total revenue – is expected to maintain solid growth, supported by long-running titles such as Honor of Kings. Its game Delta Force also reached a new revenue high in November, according to Sensor Tower. Jefferies analyst Thomas Chong said in a recent note that AI deployment could further boost user engagement and monetisation in Tencent’s gaming segment. What should investors look for in Alibaba’s earnings? Morgan Stanley last week described Alibaba as a potential global AI winner, arguing that “ownership of the full AI stack – chips, cloud infrastructure, models and applications – will differentiate long-term leaders from laggards”. The company is undergoing a strategic shift from its roots as an e-commerce giant towards becoming a “full-stack AI” infrastructure provider. Its in-house chip unit, T-Head, has gained increased visibility, with plans to support the build-out of computing infrastructure and expand external sales. The unit is also reportedly being considered for a separate listing, with Morgan Stanley valuing it at between US$28 billion and US$86 billion. Alibaba has also accelerated organisational restructuring over the past year to keep pace with rapid AI developments. This week, it established a new Alibaba Token Hub (ATH) business group to consolidate core AI operations around the creation, delivery and application of “tokens”. Analysts say key challenges include sluggish growth in its core e-commerce business amid macroeconomic headwinds, while heavy investment in AI could weigh on near-term profitability. “We expect the stock to look through near-term earnings pressure and re-rate on a clearer cloud and generative AI monetisation inflection,” JPMorgan Chase said in a January preview note. Meanwhile, quick commerce remains another area of investment. Alibaba has been competing with delivery giant Meituan since last year, although subsidy intensity has eased. After a period of rapid expansion, management was now shifting towards improving unit economics while seeking synergies with its Taobao and Tmall Group, as highlighted by Jiang Fan, head of its e-commerce business, on the previous earnings call. </div>

516010

KBAB

BABX

<p>Tencent and Alibaba are set to report quarterly earnings this week amid an AI boom. Tencent is expected to post a 13% revenue increase to 194 billion yuan and a profit of 55 billion yuan. Investors will focus on Tencent's AI investments and gaming updates. Alibaba anticipates revenue of 289.8 billion yuan, with adjusted earnings per share rising sharply. Analysts highlight Alibaba's shift towards AI infrastructure and challenges in its e-commerce sector. Both companies are navigating a rapidly evolving market landscape.</p>

- Tencent Holdings and Alibaba Group are set to announce their quarterly earnings this week amid a booming AI landscape reshaping the global economy.  
- Tencent, expected to release results on Wednesday, has projected a 13% revenue increase to 194 billion RMB, with a profit forecast of 55 billion RMB, while analysts anticipate Alibaba’s revenue to reach 289.8 billion RMB, marking a 3.4% growth.  
- Investors will watch for Tencent's AI investments' impact on profitability and Alibaba's transition to a full-stack AI infrastructure provider amidst challenges in its core e-commerce growth.

Tencent and Alibaba quarterly earnings preview: key things to watch