Shares for Chinese technology company, Tencent hit a record high on Monday. The subsequent analysis of the company’s worth found that it was now valued at over $500 billion.
The technology firm, which has its base in China, is the first Asian company to reach such a high number. The company is now closing in on the biggest businesses in the world including Facebook and Amazon.
Tencent is well known in the industry as the manufacturer of the instant messaging app, WeChat, not to mention a number of online games. The company went public in 2004 at HKD 3.70 a share. Since then, the company has managed to rally almost 11.25%. As such, Tencent’s stock for the current fiscal year alone has increased by an enormous 121.4%.
The company’s shares have been driven up by Tencent’s continued revenue growth, which could be attributed to its huge user base and a number of investments in new, and profitable areas. Just last week, Tencent reported a 67% rise in its net profit for the third quarter.
A great deal of Tencent’s profit comes from its online gaming enterprise. This section of the company brings in close to $4 billion a year. The number is likely to increase after the company acquired a majority stake in the Finnish smartphone maker, Supercell. Supercell is the company behind the addictive worldwide phenomenon, Clash of Clans. This combined with its 1 billion large WeChat user base in China has helped Tencent reach its $500 billion heights.
However, the company is not satisfied. Tencent is now attempting to take over the U.S. market and has acquired stakes in both Tesla and Snap. The company has also invested in a number of Asian based start-ups including Uber’s Indian rival, Ola.
Tencent’s market capitalization as of Monday was close to $510.7 billion, putting its market cap much higher than other Chinese competitors like Alibaba and Baidu.
Tencent is certainly creeping up on U.S. based firms like Facebook, with its $520.14 billion and Amazon, currently valued at $544.46 billion.