The shine is off Asia’s market darling.
Tencent Holdings Ltd. TCEHY -6.67% shares fell as much as 5% on Thursday in Hong Kong after the Chinese tech giant reported its first quarterly profit drop in more than a decade. The selloff extended a rout that has wiped out more than $175 billion of the company’s market value since January.
The underwhelming performance by the world’s largest videogame publisher by revenue left many Wall Street analysts red-faced. Nearly all the equity research analysts that cover Tencent have buy-related recommendations on the stock, which recently traded 32% below its average price target, according to FactSet.