Alibaba Is Only Worth About Half of Tencent as Recovery Lags
- Companies’ values widen after Alibaba cloud announcement
- Alibaba now trades at eight times forward earnings multiples
This article is for subscribers only.
Alibaba Group Holding Ltd.’s market value has slumped to only about half that of rival Tencent Holdings Ltd. as the former’s e-commerce-centric business faces sluggish demand and intensified competition.
Alibaba, whose other main business line includes cloud computing, has a market capitalization of $201 billion, while Tencent, focused on social media and gaming, is valued at $384 billion, according to data compiled by Bloomberg. Alibaba’s shares now trade around eight times forward earnings multiples, versus 16 times for Tencent.