Alibaba's Market Value Falls to Half of Tencent's

Alibaba's market value has fallen to about half of Tencent's, with a market capitalization of $201 billion compared to Tencent's $391 billion. Alibaba's shares are trading around eight times forward earnings multiples, about half of Tencent's 16 times. The company's value divergence is attributed to regulatory and macroeconomic issues, including a crackdown on Alibaba's affiliate Ant Group Co. and a fine of $1 billion. China's tepid consumption recovery and heightened competition in the e-commerce space are also impacting Alibaba's business environment.