Published: Tue, November 21, 2017
Hi-Tech | By Grace Becker

The world's fifth largest company is now Tencent, not Facebook

The world's fifth largest company is now Tencent, not Facebook

It's official: China's biggest tech company is now worth more than Facebook.

On Tuesday, the Chinese giant behind the WeChat messaging app surpassed Facebook in value after its shares hit a record high of 439.6 Hong Kong dollars giving it a market capitalization of $534.5bn, surpassing Facebook's value of $519bn.

A second stock connection with mainland China which opened late a year ago has allowed even more money to flow onto the semi-autonomous city's exchange. Investors have piled bets on the company's forays into mobile gaming and video streaming.

Facebook is still the world's most popular social network, with around two billion users worldwide.

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The market movement made China's Tencent one of the world's top five most valuable companies, although it is still far short of leader Apple which is now valued at $873 billion. Facebook CEO Mark Zuckerberg has made numerous attempts to convince China to allow Facebook into the country, even going so far as to reportedly develop censorship tools for the Chinese market, but China continues opposing the company's return.

Tencent has become the first Asian company to pass the 500-billion dollar milestone and is now the sixth most valuable firm in the world, with Apple, Alphabet and Microsoft currently occupying the top three places. Tencent's online games division, which boasts popular titles like "Honor of Kings", saw its sales soar by 50% compared to a year ago.

Analysts have been positive on the company's stock after it easily surpassed previous market expectations for its earnings report for the third quarter earlier in November.

Tencent's market cap has furthermore than tripled ever since March 2014 when it attained $150 billion, exceeding Intel in the course. Last week, Daiwa Capital Markets raised its price target to 480 Hong Kong dollars.

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