HKEX-listed technology companies. Cloud infrastructure cycles, earnings distortions, and the gap between near-term EBITA and long-term platform value.
Technology companies on HKEX — particularly large-cap internet and cloud businesses — go through investment cycles that compress reported earnings while building long-term infrastructure value. The market tends to re-rate these businesses on near-term EBITA margins rather than platform trajectory. When cloud revenue is growing 36% and reported EBITA is falling 57%, both numbers are real and only one of them describes the direction of the business.
EBITA Down 57%. Cloud Up 36%. This Is What Amazon Looked Like in 2014.
Alibaba's adjusted EBITA fell 57% in Q3 FY2026 — because the company is building data centres and buying GPUs for China's largest cloud platform. Cloud Intelligence Group grew 36%. EV/EBIT is 10.8× against Tencent at 15× and Amazon at 35×. Net cash of US$40B is 13% of market cap. The fears are in the price. The growth rate is not.
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