In January, Tencent’s share price hit a record high. The Chinese firm, creator of popular video games and the WeChat messaging service, boasted a market valuation of more than $500 billion and had become one of Asia’s most valuable companies.
It’s been downhill ever since.
Tencent has lost more than $250 billion—with a “B”—in market value in the intervening months. This year’s wipeout is worse than any other company in the world, according to Bloomberg.
This dramatic 44% decline in share price means that Tencent is no longer one the world’s top 10 largest companies. That spot has been reclaimed by ExxonMobil.
Tencent tried to stop the bleeding by buying back shares over the past month (paywall). It hasn’t worked. Today, amid a global market rout, its stock fell by almost 7%, the second-worst daily decline in seven years. Traders have become increasingly jittery in the past few weeks, especially about tech stocks, leading to a wave of selling amid concerns that trade tensions between the US and China will curb economic growth.
China’s benchmark equity index fell to its lowest level in 2014 today. More than 1,000 stocks in the index fell by the daily maximum allowed by the exchange.