China’s Tencent bigger than Facebook

China’s Tencent bigger than Facebook

Tencent Holdings has racked up some impressive gains this week, becoming the first Chinese firm worth over $500bn (€426bn) and surpassing Facebook to be the world’s fifth-most valuable company.

Earnings for China’s biggest social network and gaming firm have surged on the popularity of its smartphone games led by titles such as Honour of Kings — a fantasy role-playing game, which has as many active players as the population of Germany.

Also driving earnings has been its messaging-to-payment superapp WeChat which has amassed 980m monthly active users, with 38bn messages sent daily. Its YouTube equivalent, Tencent Video, has become the video streaming service with the largest paying subscriber base in China.

That success has helped Tencent’s stock more than double this year, making it Asia’s most valuable company, worth $522bn and easily outpacing a 36% rise in the benchmark Hang Seng Index.

That beat Facebook’s market value of $519bn. Only Apple, with a market capitalisation of about $873bn, followed by Google owner Alphabet, Microsoft, and Amazon are worth more.

Led by Chinese billionaire Pony Ma, Tencent this month reported a better-than-expected 69% rise in third-quarter net profit.

“Tencent’s high growth, as demonstrated by its quarterly results, has supported the rally in its shares,” said Steven Leung, a sales director at UOB Kay Hian.

“Since the company has been able to deliver with its earnings, the stock is still worth holding onto despite its current high level.”

In addition to robust earnings, Tencent has also burnished its lustre after some units and affiliates have made some eye-catching market debuts.

An executive recently also said the company is close to making Malaysia the first foreign country to roll out its WeChat ecosystem, pitting it against Alibaba as they scramble for new growth opportunities outside China.

Among the 39 analysts who cover Tencent, the average rating on its shares is a “buy”, with their average target price at HK$433.60 (€47.3).

The stock closed at HK$430 yesterday.

After Tencent, rival Alibaba ranks second among Asian firms with a market value of $481.5bn, while South Korea’s Samsung is number three at $364bn.

Reuters


More in this Section

ESRI warns Government against an early cut to Covid-19 pandemic payments as economy slumpsESRI warns Government against an early cut to Covid-19 pandemic payments as economy slumps

Lufthansa bailout 'in Europe's best interests'Lufthansa bailout 'in Europe's best interests'

Commercial landlord Hibernia Reit sees city centre office demand outpacing Covid-19 'speed-bump'Commercial landlord Hibernia Reit sees city centre office demand outpacing Covid-19 'speed-bump'

EU says it now has €1.85trn firepower to fight Covid-19 economic devastation across the continentEU says it now has €1.85trn firepower to fight Covid-19 economic devastation across the continent


Lifestyle

Cork author Conal Creedon tells Richard Fitzpatrick about some of his influences, from characters in his family’s shop to Ian Dury and Jim JarmuschCulture That Made Me: Conal Creedon on showbands, punk rock and playing the saw

A new thriller on Netflix is already causing a stir, and JK Rowling has set the internet alight with chapters of her fairytale, writes Des O’DriscollOnline Entertainment Tips: Snowpiercer, JK Rowling's new tale, and two films on Repeal

She's been sorting out Cork people for ages likeAsk Audrey: Normal People is basically a Maeve Binchy novel with mobile phones

Every evening, volunteers set out on bikes from Penny Dinners, delivering food and supplies to Cork’s homeless community. Donal O’Keeffe accompanied the Knight Riders on their rounds.Knight Riders bike around Cork city to deliver food to the homeless for Cork Penny Dinners

More From The Irish Examiner