Tencent surpasses Facebook in market value
The Chinese social media company is known for WeChat and League of Legends
It hurts to be No. 6, doesn’t it, Facebook?
The Bloomberg headline about the Chinese firm that’s now the world’s most valuable social network said it all: “Tencent’s $292 Billion Rally Ousts Facebook From Global Top Five”
Yes, it’s a sad day in Menlo Park.
Tencent, the social networking giant and proud operator of the wildly popular WeChat, has surpassed Facebook in market value, becoming the world’s fifth-largest publicly traded company.
And if that weren’t bad enough, Tencent CEO Ma Huateng is now worth more ($48.3 billion) than the founders of Google, Larry Page and Sergey Brin, according to Forbes.
Here’s how the numbers stacked up as of 1:51 p.m.
Hong Kong time Tuesday: Tencent’s market value: $528 billion. Facebook’s market value: $522 billion.
Why the big burst for Tencent? It owns WeChat, China’s enormously popular messaging app and hit gaming franchises, such as League of Legends and Honour of Kings.
Its share price popped on news that Tencent would roll out its WeChat payment services in Malaysia next year. The company also has stakes in Snap, in Lyft and in Tesla. And it has goosed its growth spurt by continuing to move into the lucrative world of online advertising and content.
Of course, in the process of passing Facebook on the market-value race course, Tencent now has a share price firmly in the global nose-bleed section. Seeing its valuation stretched to record highs, the stock’s now trading at more than 50 times forward earnings.
Contact Patrick May at 408-920-5689.