Why Tencent Holdings (TCEHY) Stock Is Down Today

NEW YORK (TheStreet) -- Shares of Tencent Holdings (TCEHY) are down -6.06% to $62.30 amid growing concern that Internet companies are overvalued, Bloomberg reports.

Yahoo Japan Corp. (YAHOF) is down -9.19% to $4.25, and Rakuten Inc. (RKUNF)  is down -4.44% to $13.10.

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Technology companies have led gains in Asian shares during the past 12 months on speculation growing demand for social networking, e-commerce and online games will boost earnings and fuel takeovers in the industry. Speculation that the rally has gone too far is building, with Twitter Inc. (TWTR) plunging as much as 11% percent in extended trading as user growth slowed, Bloomberg noted.

The Bloomberg Asia Pacific Internet Index fell 2.8% today to the lowest level since December 4, paring its gain during the past 12 months to 28%.

The MSCI Asia Pacific Index fell 3.5% in the same period.

TCEHY Chart

TCEHY data by YCharts

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