Tencent the internet giant based in China passed Facebook in market value only one day after it became the first technology company in Asia to reach the valuation level of $500 billion.
Shares of Tencent set new record highs on Tuesday during Asian trading giving the company a HK$4.17 trillion market capitalization equal to $534.5 billion.
The value of the Chinese company surpassed that of Facebook, which as of the close of the markets Monday in the U.S. sat at $519.5 billion.
In addition on Monday, Tencent beat out Alibaba to become the first technology company based in China to reach the $500 billion mark for market capitalization Tencent is closing in on the $542.7 billion market valuation of Amazon.com.
Tencent became a public company in 2004 in Hong Kong at the per share price of HK$3.70. Since that time, it has increased by more than 11,000%. Stock at Tencent in 2017 alone has surged an amazing 126.7%.
Nevertheless, the company outside China is not very well-known, but owns the most popular messaging service in the country called WeChat, which has nearly 1 billion active users.
Tencent has become a giant in business with a huge reach spanning social media, gaming, content and news.
Mobile and online games are an important part of its business, as the division took in more than $4 billion worth of revenue during the most recent quarter.
During 2016, Tencent acquired the majority stake of Supercell a smartphone maker based in Finland. Supercell is the company that is behind the very popular mobile game Clash of Clans.
Tencent is attempting to become bigger outside China, but not through the expansion of its products. Instead, Tencent has made investment in different part of the U.S. as well as Asia. It has taken stakes in Snap and Tesla, and in several Asian based startups including Ola, a rival of Uber based in India.
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. Barclays increased the price target to $59 from $49 for Tencent and increased its forecast for revenue for both 2018 and 2019.
Barclays on Monday said that it attributes the accelerating growth in revenue at Tencent with its continued monetization improvement in multiple important business segments, like video, payment services, gaming, and noted that its growth in users remains strong.