"Tencent's high growth, as demonstrated by its quarterly results, has supported the rally in its shares".
Tencent climbs 2.8% to reach another record high; becomes first Asian company to be valued over $500 billion.
Of the other four top rated companies in the world namely, Apple Inc., Alphabet Inc., Microsoft Corp. and Amazom.com Inc., only Amazon is valued a much less. Tencent's shares, traded in Hong Kong, have doubled in value this year as the tech company's earnings have repeatedly outmatched analysts' expectations.
Image source Bloomberg via SCMP
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. Since then, it has rallied 11,251 per cent. Tencent's stock this year alone is up 121.4 per cent. Despite their huge size, each company consistently posts solid double-digit growth both in terms of profits and revenue, as they consolidate their leading positions in e-commerce for Alibaba and online gaming for Tencent. Last week it said its profits had jumped almost 70 per cent. The number is likely to increase after the company acquired a majority stake in the Finnish smartphone maker, Supercell.
The company also targets to bring its very popular multiplayer game, Honor of Kings, to the United States. One of its key products is China's most popular messaging service, WeChat, which is now approaching 1 billion users. Tencent is now attempting to take over the US market and has acquired stakes in both Tesla and Snap.
Tencent is certainly creeping up on US based firms like Facebook, with its $520.14 billion and Amazon, now valued at $544.46 billion. It has acquired stakes in both Tesla and Snap, and invested in numerous start-ups in Asia including India's Uber rival Ola.More news: IGP reiterates 'commitment' to local militants who want to 'rejoin their families'