On the morning of September 19th, Beijing time, according to the data compiled by Bloomberg, Tencent was the worst performing stock in 2018 among the ten companies whose analysts gave a “Buy rating” and a market value of more than US$100 billion. . Bloomberg believes that Tencent can be regarded as the most disappointing stock of the year.
On Tuesday, Tencent's share price fell 22% on the Hong Kong Stock Exchange. As Tencent failed to maintain its revenue growth momentum and the government rigorously cracked down on the gaming industry, the company's market value evaporated by $10 billion.
Tencent ranked first in the largest decline in stocks compiled by Bloomberg. (The rightmost column is Bloomberg rated, with a rating of 5% means consistently recommended buy)
In the previous January, Tencent's stock hit a record high, and its share price reached 474.6 Hong Kong dollars, an increase of 64,000% compared with the opening price in 2004. Analysts have been reluctant to give up on this stock, and Tencent has about 5% of the weight in the MSCI Emerging Markets Index. The average stock price target is set at 451.1 Hong Kong dollars, which means that this stock will see a 41% recovery in the next 12 months.