Chinese companies like Alibaba benefit from increased consumption and AI advertising

From CNBC: 2025-05-16 04:30:00

Alibaba, Tencent, and JD.com reported earnings reflecting an increase in Chinese consumer spending and the benefits of AI in advertising. Alibaba’s sales rose by 9%, JD.com saw a 17% increase in certain categories, and Tencent’s marketing services revenue surged by 20%.

The U.S.-China trade dispute has negatively impacted consumption, but sales of electronics and home appliances have thrived. Alibaba noted a 12% growth in marketing revenue thanks to their AI tool. Despite a drop in consumer confidence, analysts predict a 5.5% year-on-year increase in retail sales for April.

YouTube announced advertisers can target ads using Google’s Gemini AI model to engage viewers. Alibaba’s profit was lower than expected, leading to a drop in shares. Analysts expect China to focus on boosting consumption to achieve the year’s growth target of around 5%. June 18 marks the next major promotional season for shopping in China, with an anticipated low double-digit sales growth.

Read more: Chinese companies like Alibaba see more consumption, helped by AI ads