Invezz
29 May 2026, 05:03 UTC · 14h ago
Here's why Alibaba, Tencent, Xiaomi stocks are falling amid the AI boom
Source · https://invezz.com/news/2026/05/29/heres-why-alibaba-tencent-xiaomi-stocks-are-falling-amid-the-ai-boom/
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Invezz
29 May 2026, 05:03 UTC · 14h ago
Source · https://invezz.com/news/2026/05/29/heres-why-alibaba-tencent-xiaomi-stocks-are-falling-amid-the-ai-boom/
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Story key points
4 claims · impact-rated
Alibaba's EBITDA declined 84% year-over-year as the company plans to spend 380 billion yuan on AI over five years. — Massive profit decline coupled with high capital expenditure without immediate payoff creates a strong bearish narrative for margins.
-0.80Tencent's Business Services revenue grew 20% year-over-year and its WorkBuddy tool is gaining traction. — Strong growth in AI-driven business services suggests a successful transition to new revenue streams, offsetting gaming risks.
+0.50Major Chinese tech stocks (Alibaba, Tencent, Xiaomi) are significantly underperforming the broader market and US peers despite the AI boom. — The divergence between US and Chinese AI stocks indicates systemic risk or lack of confidence in China's ability to monetize AI.
-0.40Continue reading
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Xiaomi's stock has dropped 30% this year and is currently at its lowest point since December 2024. — Consistent downward price action reflects poor market sentiment regarding the company's competitiveness against Apple.
-0.30Ticker attribution
Model heads
Stock has soared 56% in the last 12 months with a market cap reaching $4.6 trillion.
Stock has plunged 30% this year and is at its lowest point since December 2024.
EBITDA is down significantly and high AI spending is creating a profit drag with no clear near-term payoff.
Stock is falling and missed revenue targets, though the analyst views it as a potential buy due to AI-driven business services.
Mentioned only as a comparison point for Alibaba's market position.
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