Tencent Passes Facebook in Market Valuation
- Author: Kyle Warner Nov 23, 2017,
Nov 23, 2017, 0:30
The makers of the WeChat messaging app became the fifth most valuable listed company in the world and the first firm in China to be worth more than $500bn (£378bn).
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.
Tencent is certainly creeping up on USA based firms like Facebook, with its $520.14 billion and Amazon, now valued at $544.46 billion.
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Last year, there were 98,000. "This is just the start". "It could end up dominating e-commerce in developing countries". Just a little past halfway through the day Alibaba crossed last year's GMV (gross merchandise value) of $17.7 billion.
Tencent's market cap is above Chinese e-commerce giant Alibaba, which stands at $474.15 billion, and Baidu at $82.97 billion.
The share price has been driven by Tencent's continued revenue growth, massive user base and investments into new areas. Tencent has been around for around 20 years now, evolving from a web portal to becoming one of the world's leading biggest purveyors of video games. Just last week, Tencent reported a 67% rise in its net profit for the third quarter. This came after the market value for the company reached a record $500 billion. Tencent's shares, traded in Hong Kong, have doubled in value this year as the tech company's earnings have repeatedly outmatched analysts' expectations.
Company president Martin Lau said Tencent will invest further in digital content, namely online video, with a focus on overseas a acquisitions.
The company's key product is popular messaging service WeChat, which is closing in on 1 billion users overall (but hasn't seen that same success overseas). It has taken stakes in Snap and Tesla, and in several Asian based startups including Ola, a rival of Uber based in India.