Chinese Retailer Tencent Breaks Record for Biggest Loss, $220 Billion

By:
Chris Gaetano
Published Date:
Oct 9, 2018
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Since January, Chinese online retailer Tencent Holdings Ltd. has lost $220 billion, representing the largest market value loss of any company this year, according to Bloomberg. This is a marked contrast from the 67,000 percent growth it experienced after its initial IPO. Bloomberg said the downward slide began nine months ago, when the company got caught up in general concerns about an overvalued tech sector. The situation got worse in March, when Tencent warned of weaker margins, and then one of the company's oldest shareholders sold $11 billion worth of stock, which prompted other investors to sell. Not helping matters were regulatory pressures and the company's first drop in profit in a decade. 

Astute readers might remember a previous world-record breaking loss in July, when Facebook lost $119 billion in the wake of a massive data breach, looming regulation and a plan to focus more on privacy. It is unknown how exactly these two records would compare, though, since Facebook's loss happened all in the course of a single day while Tencent's, while much bigger, took place over months. 

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