China’s digital dragons are breathing profit fire while Silicon Valley struggles with billion-dollar bets. The country’s earnings parade reported a mostly positive quarter, seeing the stocks of JD.comJD

, NetEaseNTES

, and TencentTCTZF

surge by up to double digits. While one champion stumbled, the results highlighted China’s tech dominance — withKWEB

’s 19.39% YTD return eclipsing the Nasdaq’s -0.87%.

• NTES
  andJD
  beat profit expectations as revenue climbed 7.4% and 16% from last year, respectively — the latter of which saw a 53% profit boom upon improved consumer sentiment.
• AI investments are paying immediate dividends as Alibaba’sBABA
  $52.4B infrastructure build-out drove “triple-digit” sales growth — whileTCTZF
  has already boosted its ad revenue by 20%.

The bigger picture: While most Chinese tech players celebrate,BABA

missed revenue and earnings expectations, sending shares in China’s third-most valuable company tumbling by 8% yesterday. With ¥12.4B ($1.72B) in net income vs. ¥24.7B ($3.43B) expected, the e-commerce titan faced challenges from US-China trade tensions, amplified by the de minimis disposal. While recent tariff suspensions offer breathing room, this earnings season revealed a tale of two tech superpowers.