Alibaba’s market value has dropped to US$201 billion – roughly half that of Tencent’s – due to less demand and stiff competition in the ecommerce sector.

The sudden cancellation of its cloud unit spinoff, coupled with subpar domestic ecommerce sales, has further affected Alibaba’s shares. Past regulatory interventions by the government in the firm’s affiliate companies also contributed to its struggles.

Meanwhile, Tencent beat analyst estimates in its latest quarter, with video advertising on its messaging platform WeChat driving revenue growth.