Tencent Holdings Ltd (HKG: 0700) has become more valuable than Facebook Inc (NASDAQ: FB), surpassing the value of the American social media giant. After a major Tencent rally, the company added around $ 200 billion to its value on Tuesday.
Founded in 1998, Tencent controls hundreds of branches and collaborators in various sectors. The Chinese company offers a range of services including social networks, e-commerce, mobile games, Internet services and payment systems, among others. With over a billion users, the company is best known for mobile games and the WeChat app.
Tencent's rating outperforms Facebook
Tuesday, Tencent's market capitalization stood at $ 5,2 trillion HK, which equates to US $ 670 billion. This is over US $ 12 billion more than Facebook's market value of US $ 657,8 billion.
However, MarketWatch data shows that Tencent currently has a market capitalization of US $ 635,49 billion, while Facebook is at US $ 665,79 billion. Tuesday's performance was not the first of its kind and Tencent has repeatedly passed Facebook's rating.
According to a CNBC report, Tencent became the first Asian technology company to reach a valuation score of $ 500 billion in 2017. At the time, the Chinese company's valuation was 4,17 trillion HK $ (534,5 $ billion), while Facebook's was $ 519,4 billion.
Overtaking was repeated several times in 2018. Thomas Chong, an analyst at Jefferies, predicts that the Tencent shares will hit HK $ 651 in the next 12 months. This goal is the highest among those of other analysts. Chong's prediction is mainly focused on the activity of mobile games.
Earnings results for the first half of 2020
In the first quarter of 2020, Tencent reported revenues of $ 108 billion. This is a 26% increase over the total revenue of the previous year. The company benefited from the coronavirus blockade as many of its customers spent more time on its apps and games. At press time the stock is traded at a price of $ 69,04.
In addition, the company's shares have increased by 7,25% in the past month and by more than 28% in the past three months. Additionally, Facebook's first quarter revenue is $ 17,54 billion.
This figure is more than 17% higher than the $ 15,08 billion reported in the first quarter of 2019. According to data compiled by Yahoo! Finance, analysts forecast revenues of approximately $ 17,40 billion and net earnings per share of $ 1,39.
Currently in market trading, FB is at $ 231,58, a 0,63% gain over the last close of $ 230,12. FB has fallen 3% in the past month and 4,6% in the past five days. However, the company's shares have increased by 18,50% in the past three months and by more than 12% in 2020 so far.
