China’s Tencent ousts Facebook as world’s most-valuable social media company

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China’s Tencent ousts Facebook as world’s most-valuable social media company

Tencent Holdings, the Chinese online games giant and owner of the popular messaging platform WeChat, had surged past Facebook’s market cap earlier on Tuesday to become the world’s No. 1 social networking mogul by market cap, while the company had also stood as the seventh-largest company across the globe, a South China Morning Post report published on late-afternoon Asian trading hours had revealed.

On top of that, according to the South China Morning Post report, latest upturn of Tencent Holdings came forth just shy of two weeks after the Chinese e-commerce giant Alibaba had replaced Facebook Inc. as the world’s sixth-most valuable company by market cap, which stood at $677.4 billion as of Tuesday’s market closure.

Tencent adds roughly $207 billion in market valuation this year

Aside from that, Hang Seng-listed shares’ prices of Tencent Holdings, owner of the Chinese online games and social messaging platform WeChat, surged as much as 4.5 per cent on Tuesday to HK$543.50, eventually lifting the company’s market cap to a stark total of $670 billion, roughly 2 per cent higher than its American peer’s market cap of $657.8 billion.

On top of that, according to data from Refinitiv Eikon, Tencent shares’ prices had rocketed over 45 per cent this year in Hang Seng, adding roughly $207 billion, while Facebook Inc., which appeared to have lost its social networking industry crown to China’s Tencent, added 13 per cent in New York Stock Exchange thus far this year.

Meanwhile, adding that a shift in global business trend over the recent years which has witnessed a number of Chinese companies making their entrances into the top 100 entities by market cap, would likely to widen the Sino-US trade rift further, a wealth management strategist at Everbright, Kenny Wen said following Tencent’s breakneck achievement on Tuesday, “With rising China GDP growth, we will see more and more Chinese companies entering the top 10 or top 100 companies.

This long-term trend will continue in the foreseeable future. However, the pandemic and worsening China-US relationship may make the situation complicated,” while analysts of Jefferies wrote in a client note that the Hong Kong-listed Tencent shares would likely to climb at least up to $84 apiece over the next 12 months.