This Chinese Giant Is Now Worth More Than Facebook

Lynne Hanson
November 23, 2017

The shares of the Hong Kong-listed Internet giant, known for its WeChat message app and online games, closed at HK$420 on Monday, bringing its market value to HK$3.99 trillion (S$692 billion).

The Shenzhen-based company, which is being headed by Pony Ma Huateng, was first launched in 2004, when the price for its shares was at $3.70 Hong Kong dollars (around $0.47 at the time), or $3,700 Hong Kong dollars ($473.69) for one board lot, which has 1,000 shares.

The subsequent analysis of the company's worth found that it was now valued at over $500 billion.

Tencent's market cap has furthermore than tripled ever since March 2014 when it attained $150 billion, exceeding Intel in the course.

The share price has been driven by Tencent's continued revenue growth, massive user base and investments into new areas.

Steven Leung, a sales director at UOB Kay Hian said that the company earned 69 percent more net profit in third-quarter. As such, Tencent's stock for the current fiscal year alone has increased by an enormous 121.4%. This came after the market value for the company reached a record $500 billion.

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It is closing in on U.S. technology firms including Facebook, which is worth $520.14 billion, and Amazon, which is valued at $544.46 billion. Revenue rose by 61% thanks to its games division, which focuses on PC and mobile.

During 2016, Tencent acquired the majority stake of Supercell a smartphone maker based in Finland.

The company's WeChat reportedly has almost 1 billion users in the country as of the end of September.

Other fast-growing parts of the business include digital content such as video, as well as online advertising.

Tencent is attempting to become bigger outside China, but not through the expansion of its products.

According to Bloomberg, Tencent shares hit a record high at $523 billion market value, marginally edging Facebook's $522 billion at the close of the US markets on Monday.

Other reports by TheDailyFarc

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