This Week Highlight: Tencent Surpasses USD500 Billion Benchmark
- 2 December 2017
Last Tuesday, China internet giant Tencent soared to above USD500 billion in market capitalization and became larger in value than Facebook. Simultaneously, this is also the first Asian based technology firm that surpasses this historical benchmark without dispute.
Prior to this day, the U.S. based company Facebook closed in NASDAQ market at USD519.4 billion in market capitalization. On the following day, Tencent traded in Hong Kong market during Asia hour and boosted to HKD4.17 trillion (est USD534.5 billion) in total market capitalization. Currently, the internet giant firm has left Alibaba behind the race and is within crouching distance to Amazon's USD542.7 billion valuation.
Tecent Technology is a home-grown firm in China and listed in Hong Kong Exchange since 2004. The company was initially opened at HKD3.70 on first day of public trading and has expanded 11,000 percent when it was recorded at HKD439.6 per share on last Tuesday.
Other than China, Hong Kong and some part of Asia, Tencent is still little known to most western countries of its wechat messaging service. This is one amazing mobile chat service with personal advertisement of social activities that does not need to rely on log-in onto computers. Besides spanning into gaming business, Tencent's wechat is a leaping-and-bound business with the e-wallet owned by every user for easy merchandising payment and mutual cash transfer, apart from the personal freedom of subscribing for news contents registered and organized by other individual (or corporations) from all fields of interest. Known to have a user base of almost 1 billion users, the company has fetched a handsome revenue of over USD4 billion over a mere quarter ended September.
In fact, Tencent has been making multiple attempts to spread its wings outside China. On top of just looking to expansion into Asia, the firm has diverged its stride into Europe and America by taking a stake into Finnish smartphone maker Supercell, American Tesla and Snap.
Many analysts are optimistic in Tencent by judging on its business model and fast growing user base. This could be a cream of crop among the global Fintec industry that pays the best returns while divesting into the multiple new economic businesses. Looking at the rapid growth and increasing revenues from the multi-stream services, it is only rationale to forecast the firm will announce another elevation in the revenue after December and be epitomized by the stock investors.
Disclaimer: This article does not mean to solicit or present sales. Readers are advised to assess your own risk appetite before making any decision.