Deals
Tencent Stuns With First Profit Drop in at Least a Decade
- Regulatory uncertainty is worsening sentiment for the company
- Major shareholder Naspers plunges 10% in South Africa
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Tencent Holdings Ltd. joined Facebook Inc. in reporting shockingly poor quarterly numbers, underscoring how tech superstars that led the market to new heights are showing signs of strain.
Tencent surprised investors with its first profit drop in at least a decade after a freeze on new game approvals in China as the regulators are restructured. Executives said they had little clarity on when the process would return to normal, putting more pressure on a company that has lost more than $160 billion of market value since its January peak. The company’s New York-traded ADRs plunged as much as 10 percent.