Could Alibaba, Tencent, JD, Baidu Share Prices Fall Further?

Alibaba Group Holding Ltd BABA and Tencent Holdings Ltd TCEHY will likely report a fall in profits and slowing revenue growth in the July-September quarter, hurt by the year-long regulatory crackdown, Reuters reports.

China's Big Tech Earnings: Beijing has reasserted control over its once-freewheeling internet sector, flogging the tech giants for engaging in anti-competitive practices.

Tencent will likely report a 12% fall in quarterly profit, its first drop in two years, Refinitiv estimates. The revenue will likely rise 16.4%, the slowest pace since the Q1 of 2019, after the new gaming diktats.

China is yet to approve any new games since August. China also denied Tencent from signing exclusive music deals, citing anti-competitive reasons. 

Alibaba will likely report a 12% decline in profit in the quarter. Revenue will likely rise 32%, the slowest in a year. JD.com Inc JD will likely report a 71% slump in profit and the slowest revenue growth in six quarters.

"We believe the financial impact of regulatory headwinds in China will be reflected in (third quarter) earnings and (fourth quarter) guidance," KGI Asia analysts told Reuters. Slowing retail sales in China due to COVID-19 lockdowns and recent power shortages will hurt Alibaba and smaller rivals.

Baidu Inc BIDU is likely to report that quarterly profit plunged 80%, hurt by a slump in advertising revenue from tutoring centers prohibited from offering private, for-profit tutoring on the school curriculum. China's efforts to regulate medical beauty advertisements have also hit advertising.

Related Content: How China Continues To Breed Danger For Alibaba, Baidu, Tencent's Prospects

Price Action: BABA shares traded higher by 2.53% at $162.75 in the premarket session on the last check Monday.