Alibaba and Tencent Lose $66 Billion as AI Spending Raises Investor Fears

Alibaba and Tencent lost a combined $66 billion in market value in roughly 24 hours, as investor optimism around AI gave way to concerns about rising costs and unclear returns.

Tencent led the drop, losing about $43 billion in a single session — its worst in nearly a year. Alibaba followed, with its US-listed shares falling overnight and its Hong Kong stock down as much as 6.4% by Friday morning, wiping out another $23 billion.

The selloff comes after a short rally driven by renewed excitement around agentic AI. Interest surged following the rise of OpenClaw, which went viral among Chinese users after the Lunar New Year, fuelling expectations that companies like Alibaba and Tencent could unlock new commercial opportunities.

Tencent’s shares had gained more than 10% at one point during that period.

Heading into earnings, investors were looking for clarity on how AI spending would translate into revenue.