Tencent overtakes Facebook in Global Top five companies

Tencent overtakes Facebook in Global Top five companies

Shares for Chinese technology company, Tencent hit a record high on Monday.

The technology firm is the first from China to reach the landmark valuation as it closes in on the likes of Facebook and Amazon.

Tencent is well known in the industry as the manufacturer of the instant messaging app, WeChat, not to mention a number of online games.

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, the company has managed to rally nearly 11.25%.

The share price has been driven by Tencent's continued revenue growth, massive user base and investments into new areas. Tencent reported a 61 percent increase year over year in total revenue and operating profits grew 57 percent year over year. Last week it said its profits had jumped almost 70 per cent. The company has successfully managed to secure its position to become one of the world's top 5 companies with net worth of more than $500 billion.

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Their genuine prowess aside, the Financial Times points out that the rise of China's tech giants has been greatly aided by Beijing's ban on the United States titans - Facebook, Twitter, YouTube and Google. Supercell is the company that is behind the very popular mobile game Clash of Clans.

However, the company is not satisfied.

Tencent's market capitalization as of Monday was close to $510.7 billion, putting its market cap much higher than other Chinese competitors like Alibaba and Baidu.

Quoting the BBC, Tencent also owns shares in Snap, the company behind Snapchat, Lyft ride-sharing app and Tesla electric vehicle maker.

It is closing in on USA technology firms including Facebook, which is worth $520.14 billion, and Amazon, which is valued at $544.46 billion. The company has also invested in a number of Asian based start-ups including Uber's Indian rival, Ola.

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