To The Moon

• Two Chinese tech leaders reported their quarterly earnings after market yesterday

• $TENCENT(00700)$ : reported first quarter revenue of 196.46 billion yuan which missed Bloomberg's estimates of 199.39 billion yuan, while profit rose 21% to 58.09 billion yuan, in line with Bloomberg's estimates

• Its capital expenditure of 31.94 billion yuan was significantly above estimates of 22.07 billion yuan, driven by AI investment (Bloomberg)

• Its executives had pledged during its fourth quarter earnings briefing to at least double Tencent's AI spending to 36 billion yuan for 2026, as it competes with the likes of Alibaba and DeepSeek in state-of-the-art large language models and agentic AI

• Tencent shares had closed 1.2% higher ahead of its results announcement and is currently trading another 3% higher to HKD 476.60 as of 936AM, following the results release

• Trending Tencent call $TencentMBeCW261005(IGYW.SI)$ (https://warrants.com.sg/tools/livematrix/IGYW) is up 7.7% to SGD 0.014 this month to date following Tencent's 1.6% gain

• Despite the share price gain today and yesterday, Tencent shares remain the third worst performing index stock on the Hang Seng Index this year-to-date, with a -20.6%  loss

• $BABA-W(09988)$ : reported its first operating loss since 2021, with four quarter adjusted earnings (EBITDA) declining 61% year-over-year to RMB16.4 billion

• Nevertheless, Alibaba shares opened 8% higher at HKD 144.00, with investors focusing instead on the cash the company is funneling into AI initiatives and its potential payoff

• CEO Eddie Wu said that Alibaba is currently prioritizing AI growth over the bottom line — meaning it’s likely to spend “far, far” more than previously targeted

• Alibaba is aiming for annual recurring revenue from models and services to  hit 10 billion yuan (USD1.5 billion) in June and is on track to surpass 30 billion yuan by the end of the year, as the company monetises its AI rollouts

• Trending Alibaba call warrant $Alibaba MB eCW261005(NNTW.SI)$ (https://warrants.com.sg/tools/livematrix/NNTW) is up more than five times more than Alibaba shares, increasing 74.2% to SGD 0.054 this month-to-date

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• Trending put warrant $Alibaba MB ePW261005(JCJW.SI)$ (https://warrants.com.sg/tools/livematrix/JCJW) was listed only on Tuesday, and have no month-to-date performance for comparison

• Alibaba shares have already pared some of this morning's gains to trade +6% higher at HKD 140.80 as of 954AM

• Investors who believe that the shares may pull back further from current levels can consider trending put warrant JCJW