Tencent’s $143 Billion Rout Is World’s Biggest as Tech Sinks

Sharing is Caring!

via Bloomberg:

If you thought the slump in U.S. technology stocks was bad, take a look at Tencent Holdings Ltd.

The Chinese Internet giant has tumbled 25 percent from its January peak, erasing about $143 billion of market value. That’s the biggest wipeout of shareholder wealth worldwide, as measured from the date of each stock’s 52-week high. Facebook Inc., the F in the FANG block of mega-cap U.S. tech shares, is the second-biggest loser with a $136 billion slump over the past three trading sessions.

World’s Biggest Loser

Tencent’s slump has wiped out $143 billion of market value

Source: Bloomberg

Investors around the world are beginning to question whether the best days are over for technology stocks — the leaders of a nine-year boom in global equities. Tencent, Asia’s second-largest company after e-commerce behemoth Alibaba Group Holding Ltd., has also been dogged by concern that growth in its mobile-gaming unit is slowing. The stock, down 3.3 percent on Tuesday and 9.8 percent in July, capped its biggest monthly retreat since 2014.

“Investors are increasingly pricing in lower expectations for Tencent’s interim results,” said Linus Yip, a strategist at First Shanghai Securities in Hong Kong. “Overall, tech companies are facing a similar problem. They have been enjoying fast profit growth in the past few years, so it will be difficult for them to maintain similar growth in the future as the competition grows and some segments are saturated.”

READ  Joe's G7 Presser Was an Absolute "World Stage" Train Wreck
READ  NOT BAD ENOUGH: This was one of the worst weeks for China on the world stage in a while.
742 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.