🌟🌟🌟 $BABA-W(09988)$ & $TENC

🌟🌟🌟 $BABA-W(09988)$ & $TENCENT(00700)$ reported earnings that were solid in fundamentals but immediately overshadowed by one word: CAPEX.

Yet when you look past the headlines, a clearer story emerges - both companies are strengthening their foundations for the next decade , not stumbling.

Would I buy the dip?

Yes since I believe in China's long term digital & AI infrastructure. Tencent & Alibaba are companies with real cash flow & real moats. Their valuations are so much lower than their US peers.

Tencent & Alibaba are not companies in decline. They are companies choosing to invest when others hesitate.

Could they drop further? Yes in the short term they may but this presents an exciting opportunity to buy these Chinese tech giants on sale.

We cannot judge Alibaba & Tencent because of a single quarter. Their long term growth is still intact.

@Tiger_SG @Tiger_comments @TigerStars

Alibaba & Tencent Miss: Can AI Serve as New Growth Engine?

Alibaba is currently engaged in an unprecedented "cash-for-growth" strategy. Nevertheless, the silver lining remains in the cloud: Alibaba Cloud’s revenue growth surged to 37%. Goldman Sachs and Macquarie noted that Tencent is shifting into a capital-intensive "catch-up phase," and cut price target to $700 amid margin pressure. This move is expected to dilute short-term profits and potentially scale back the size of share buybacks. Can Alibaba Cloud’s price increases stem the "bleeding" of profit margins in the next quarter? Is this a value trap, or simply the darkness before the dawn?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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