China long celebrated Tencent as a national champion. Now the tech giant is getting a taste of what it’s like to be on the other side of government patronage.
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Tencent slumped after the Chinese social media giant reported shockingly poor quarterly numbers, underscoring how tech superstars that led the market to new heights are showing signs of strain.
Naspers, Africa’s largest company by value, plunged the most in almost 10 years in Johannesburg trading after Chinese Internet giant Tencent posted earnings that missed analyst estimates.
The Chinese Internet giant, best known for its popular games and ubiquitous messaging services, has shed more than $150-billion in market value since a January peak.
Tencent slumped after taking another hit to its gaming business when regulators told the social media giant to remove Monster Hunter: World from its PC downloads service just days after the action title’s debut.
Google wants to get back into China, and is laying the groundwork for a key part of the initiative: bringing its cloud business to the world’s second largest economy.
There is a lot of debate in the investment industry about whether the high valuations of global technology stocks are sustainable.
The Chinese Internet giant, in which South Africa’s Naspers holds a 31.2% stake, has tumbled 25% from its January peak, erasing about $140-billion of market value.
Naspers is considering the listing of certain parts of its sprawling global media and technology business outside South Africa as the continent’s largest company by market value seeks to reduce its size.
Tencent has become one of the most aggressive promoters of pro-gaming. And it’s hard to overstate the mania that’s gripped China in particular.