Goldman Sachs said before China's third-quarter earnings report was released that compared to e-commerce, advertising and local lifestyle services, it is more optimistic about the gaming and entertainment business; at the same time, the expansion of cloud computing and AI businesses and improved profitability of Internet platforms will also bring investment opportunities. On the Tencent side, Goldman Sachs expects revenue from gaming and advertising businesses to increase by 8% and 19%, respectively, in the third quarter. Accelerated cloud business growth and the promotion of WorkBuddy, an enterprise-grade AI agent, will provide additional growth impetus, maintaining a target price of HK$650 for 12 months. On Alibaba's side, Goldman Sachs expects cloud business revenue to increase by 53%, profit margin to improve to 12.5%, and adjusted profit before interest, tax and amortization to increase 238% year over year to RMB 31 billion. Improved profitability of cloud business and improved economic efficiency of takeaway business units are expected to enhance the company's ability to support AI investment. On the Pinduoduo side, Goldman Sachs is optimistic about its abundant net cash and strong free cash flow, and is concerned about the improvement in Temu advertising monetization efficiency and return on advertising investment, as well as the progress of the “New Spam” program, but it is expected that short-term profits will still be pressured by increased costs and investment. On Meituan's side, Goldman Sachs expects adjusted operating profit to increase 104% year-on-year to 700 million yuan in the third quarter. Improved takeout business profits and increased profits in the retail, hotel, and travel business are the main driving factors. Keeta's international expansion and AI local lifestyle services have long-term growth potential. On the JD side, Goldman Sachs expects the Group's net profit to increase 39% year over year to 8 billion yuan. The retail business is still the main source of profit. Improved free cash flow is expected to support shareholder returns. JoyBuy's international expansion and AI e-commerce business will bring further growth opportunities.

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