Investors lose $66 billion in a day for these firms
Alibaba and Tencent just saw $66 billion wiped from their market value in a single day.
Investors reacted fast after both companies' earnings reports didn't lay out clear plans for making money from AI.
Alibaba's US shares posted their steepest decline since October 2025
Alibaba's US shares dropped to their lowest since August 2025, losing $23 billion overnight, while Tencent shed about $43 billion of market value.
The massive selloff has people questioning whether big Chinese tech firms can really cash in on AI as costs keep rising.
Both companies are investing heavily in AI
Alibaba reported a steep 67% fall in net income and a sharp fall in operating income, even though its cloud revenue rose. The company responded by hiking cloud prices and rolling out its Wukong AI agent.
Meanwhile, Tencent's revenue grew thanks to gaming and ads, but details on its AI projects were vague.
Analysts expect profits to grow more slowly in the near term as both companies pour more money into developing AI.