$BTC fellow brothers, take a look at Tencent and Alibaba’s new financial reports—this behind-the-scenes drama is definitely not just for show. The most explosive part of Tencent’s latest report is that free cash flow is negative, coming in at as much as 13.8 billion. This lines up closely with the script from Alibaba’s net profit dropping 99% last quarter and AI capital expenditures of 38.7 billion yuan. Honestly, we used to think that the internet business is a “light-asset” play—spend some money and you can distribute endlessly. But now that the AI transition is underway, it’s all “model–computing power–physical resources,” a heavy-asset game. So what does this mean, brothers? The valuation privileges of the old era are collapsing. If you want to play in the AI track, everyone has to sink money into building up computing power—this is different from the setup we used to rely on. You really do need to find a new position.
(Source: huxiu)
#MarketNews