Tencent’s Rout This Year Has Wiped Out Over $175 Billion in Market Value

Selloff sparks fears of broader contagion for tech stocks around the world

The shine is off Asia’s market darling.

Tencent Holdings Ltd. 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...