NEW YORK (TheStreet) -- This week, Chinese Internet giant Tencent -- which only trades in Hong Kong, which is why you don't hear more about it over here -- saw its stock take another drop.
A month ago, when momentum tech stocks around the world hit their peak, Tencent hit the $635 level. That gave the company a market cap of about $170 billion. However, it's now dropped to $524 and, earlier in the week, it briefly fell below $500. That gave it a market cap of $134 billion and was a 21% drop from where it hit its highs.
Its drop has reflected a risk-off attitude by investors towards all Chinese Internet names. These stocks are high fliers and can go up incredibly far in good time but then can also drop suddenly as well.
In the last month, Sina (SINA) is down 16%, Baidu (BIDU) is down 18%, Renren (RENN) is down 26% and Sohu (SOHU) is down 27%. Yet, all these names are still up strongly for the past 12 months and Baidu is even up 71% over that time.
But Tencent is another story entirely. It's up almost 110% in the last 12 months.
Its success is deserved. Its popular WeChat messaging app has swept up China. The company is already finding innovative ways to monetize the huge user base, unlike WhatsApp. Many also believe Tencent will be a formidable competitor to Alibaba's traditional dominance in e-commerce as it is training the WeChat users to make purchases from within the app instead of going to Alibaba's sites to do this.