This Chinese Giant Is Now Worth More Than Facebook
- Author: Kara Saunders Nov 23, 2017,
Nov 23, 2017, 0:31
Tencent became a public company in 2004 in Hong Kong at the per share price of HK$3.70. Tencent hit a market cap of HK$3.99 trillion or roughly $510 billion. This came after the market value for the company reached a record $500 billion. Tencent briefly passed Facebook in value on Tuesday, but then gave back the title on Wednesday, when the former was worth $511 billion versus $521 billion for the latter.
Analysts say it can go further.
"It would be a wrong decision to sell it just for some short-term gain", he said.
The company's shares have been driven up by Tencent's continued revenue growth, which could be attributed to its huge user base and a number of investments in new, and profitable areas. Last week, it reported a 69 per cent year-on-year rise in net profit for the third quarter to 18 billion yuan (S$3.7 billion), beating market forecasts. The messaging app has 500m users in China which acts as a "portal" for thousands of different products, from payments to customer service.
It is also expected to bring its hugely popular multiplayer game Honour of Kings to the United States.
Tencent also acquired a majority stake in Finnish smartphone maker Supercell, the firm behind the popular Clash Of Clans mobile game.
Tencent has almost one billion users on its popular WeChat phone platform, where people can chat, post photos, play games, transfer money and pay for a variety of services in China.
Other fast-growing parts of the business include digital content such as video, as well as online advertising, said CNBC. Hong Kong Exchanges & Clearing rallies 5.5%; turnover on main board reaches HK$157 billion (HK$20.1 billion), way ahead of the year's previous high of around HK$140 billion.
Another factor to consider in Tencent's massive success is its online publishing and e-book unit China Literature, which was launched earlier this month.