After a strong return in Chinese technology stocks in the last year, their earnings reports offered a mixed message.
E-Commerce leader Alibaba (BABA) pulled back on May 15, 2025, after posting quarterly results. In the fiscal fourth quarter, revenue grew by 7% Y/Y to $32.58 billion. Results are positive overall. Despite the weak economic backdrop, net income grew by 1,203%. Alibaba benefited from strong demand in its AI, Cloud Intelligence, and AI-related products.
Alibaba’s e-commerce platforms also performed well. Taobao and Tmall group reported a 12% increase in revenue.
JD.com (JD) reported a 16% Y/Y increase in total revenue. The company enjoyed strong Online retail sales and total retail sales. The company is anticipating strong operational tailwinds throughout 2025. At the current 618 sales event, expect cheap product goods to drive sales and net margins.
In the gaming segment, Tencent (TCEHY) posted strong results. Revenue of RMB180B is up 12.9% Y/Y. Revenue from online advertising, fintech, and business services helped lift Tencent’s results.
The AI sector is another growth opportunity for Tencent. For example, Agentic AI is a concept that will help Tencent get questions answered quickly. It may also complete complex tasks. Watch out for Tencent reporting higher efficiencies as it implements this type of AI.
