Tencent overtakes Facebook to enter world's top five most valuable listed companies

Kristi Paul
November 23, 2017

Both companies have current market values of about $520 billion, making them the world's fifth and sixth biggest publicly listed firms by market capitalization, according to Bloomberg data.

"Hong Kong valuations are still attractive and H-share financials look like a safe bet", said Sam Chi Yung, a Hong Kong-based senior strategist with South China Financial Holdings Ltd.

Tencent's market cap is above Chinese e-commerce giant Alibaba, which stands at $474.15 billion, and Baidu at $82.97 billion.

Tencent is now closing in on the likes of Facebook and Amazon. This came after the market value for the company reached a record $500 billion.

Analysts say it can go further.

Tencent now sits alongside a handful of USA companies you are much more likely to have heard of: Apple, Amazon and Microsoft.

Steven Leung, a sales director at UOB Kay Hian said that the company earned 69 percent more net profit in third-quarter. The messaging app has 500m users in China which acts as a "portal" for thousands of different products, from payments to customer service. Revenue rose by 61% thanks to its games division, which focuses on PC and mobile.

It is also expected to bring its hugely popular multiplayer game Honour of Kings to the United States. The number is likely to increase after the company acquired a majority stake in the Finnish smartphone maker, Supercell.

Other fast-growing parts of the business include digital content such as video, as well as online advertising. Hong Kong Exchanges & Clearing rallies 5.5%; turnover on main board reaches HK$157 billion (HK$20.1 billion), way ahead of the year's previous high of around HK$140 billion. Although as we can see in the above table the battle for fourth place is a lot closer than it is for first; where Apple stands almost $200 billion ahead of Alphabet the company behind Google.

Other reports by VideoGamingPros

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