This Chinese Giant Is Now Worth More Than Facebook

Galtero Lara
Noviembre 22, 2017

Chinese social networking giant, Tencent Holdings Ltd. has surpassed Facebook market value, becoming the first Asian technology firm to join the world's five largest corporations.

Shares of the 19-year-old company, listed on the Hong Kong Stock Exchange, hit record numbers on Tuesday, rallying to close at HK$430 to give it a market capitalization of some $522 billion-about $3 billion above Facebook's closing valuation of $519 billion Monday.

The company went public in Hong Kong in 2004 at 3.70 Hong Kong dollars per share.

Tencent has developed into the first Chinese company to be priced at further than $500 billion. Since that time, it has increased by more than 11,000%.

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Still, Tencent is not well-known outside of China, but owns the country's most popular messaging service, WeChat, which has close to 1 billion users. Created nearly two decades ago as a Web portal before morphing into one of the world's biggest purveyors of video games, the argument is that its dominance of Chinese social networking also bankrolls an expansion into newer markets from video streaming to finance. Revenue rose by 61% thanks to its games division, which focuses on PC and mobile. Games such as Honour of Kings, Dungeon Fighter Online, Clash of Clans, and League of Legends. Instead, Tencent has made investment in different part of the well as Asia. Last week, the Chinese company reported a 69% year-on-year rise in net profit for the third quarter to 18 billion yuan ($2.71 billion), beating market forecasts.

The company also has a stake in Snap, the company behind Snapchat, ride-sharing app Lyft and electric-vehicle maker Tesla.

Barclays on Monday said that it attributes the accelerating growth in revenue at Tencent with its continued monetization improvement in multiple important business segments, like video, payment services, gaming, and noted that its growth in users remains strong.

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