Tencent Stock Outperformance to Alibaba Grows as Profits Diverge
- Investors are focused on companies’ bottom lines: Chen
- Tencent rises as much as 5% in Hong Kong, Alibaba slips 4.7%
Tencent shares are set to extend their outperformance to a record after the company’s net income climbed a stronger-than-anticipated 62% from a year earlier.
Photographer: Yan Cong/BloombergThis article is for subscribers only.
Tencent Holdings Ltd.’s outperformance over Alibaba Group Holding Ltd. widened after the two internet giants reported contrasting earnings for the first three months of the year.
Tencent shares climbed as much as 5% in Hong Kong, taking their outperformance over their rival to 31 percentage points this year after the company’s net income climbed a stronger-than-anticipated 62% from a year earlier. Alibaba fell as much as 4.7% after profits plunged. Hong Kong markets were closed for a holiday on Wednesday.