Chinese internet juggernaut, Tencent Holdings Ltd., has surpassed social media company, Facebook, in market value. This happened a day after the conglomerate became the first Asian tech firm to reach the $500 billion valuation mark. They are now the fifth-most valuable company in the world.
Tencent shares were 439.6 Hong Kong dollars during Asian trading hours on Tuesday, giving it a market value of 4.17 trillion Hong Kong dollars ($534.5 billion). The company is close to Amazon’s $542.7 billion market valuation.
While Tencent is not well-known outside of China, their messaging app, WeChat, has doubled their stock this year and rightly so. WeChat is China’s most popular messaging service, having garnered almost a billion users, with 38 billion messages sent daily. Besides WeChat, Tencent also has another streaming service called Tencent Video which has the largest paying subscriber base in the country.
Tencent beat Facebook’s market value of $519 billion on Monday, while companies like Apple Inc., Alphabet Inc., Microsoft Corp and Amazon still remain on top.
The company was able to register such colossal figures also thanks to their online and mobile games business. That branch brought in $4 billion in revenue last quarter. They also broke into the western market by acquiring stakes in both Tesla and Snap as well as numerous start-ups in Asia.
Independent technology analyst, Richard Windsor, stated Tencent’s 2016 acquisition of Finnish company, Supercell, gave the company a sizeable footing in the gaming sector. They also bought a stake in social media firm, Snapchat, another smart move according to Windsor. While still in its “early stages”, the analyst believes Tencent is building a digital conglomerate to match Apple, Facebook, Google, and Amazon.
Analysts knew the company was due for a rise in stock after the company reported its third-quarter earnings earlier this month.
“Tencent’s high growth, as demonstrated by its quarterly results, has supported the rally in its shares,” said Steven Leung, a sales director at UOB Hian.
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