The Singapore-based company gave a muted forecast for its digital entertainment unit and its shares fell 13% in U.S. trading. That cut US$11 billion from its market valuation, pushing its total decline to US$132 billion from its high in October.
“We are giving back some of the gains we made partially during Covid and with additional discounts to reflect the situation in India, which is highly unfortunate,” Wang said. “Given the uncertainty we are facing, it’s probably more art than science for us.” While its digital entertainment booking outlook isn’t entirely unexpected due to slowing user growth and taking into consideration the negative impact from fast growth market India, the magnitude of the decline was still a shock, Citigroup Inc. analysts wrote in a note.