Alibaba and Tencent Face End of an Era as Sales Start to Shrink

  • Both are expected to post their first revenue declines
  • China is facing a consumer and economic crisis of faith

People walk past the mascot for the Taobao e-commerce platform at the Alibaba headquarters in Hangzhou, China.

Photographer: Qilai Shen/Bloomberg
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For almost a decade, Alibaba Group Holding Ltd. and Tencent Holdings Ltd. embodied China’s economic miracle, sustaining a dizzying pace of growth and approaching trillion-dollar valuations with splashy forays into every corner of the internet.

That spectacular run could officially end Thursday, when the e-commerce powerhouse that Jack Ma founded is expected to record its first-ever decline in quarterly revenue -- one of the few major Chinese internet corporations to do so, ever. Fellow billionaire Pony Ma’s Tencent, the social media powerhouse, could follow suit days later.

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Alibaba and Tencent Face End of an Era as Sales Start to Shrink