Now valued at $500 billion, Tencent Holdings Limited has become Asia’s first technology company to reach such remarkable value. The Chinese tech giant also boasts the title of being the fifth largest internet company in the world. Since the release of their IPO in 2004, Tencent’s stock price has increased astronomically by 11,000 percent. Therefore it did not come as a surprise when the company recorded a 115 percent increase in its stock price in 2017. Earnings per share grew 65 percent, and revenue is estimated to be $10 billion. Tencent Holdings Limited plans to release its financial statement for 2017 on March 21, 2018, and we are excited to see its performance.
Tencent Holdings Limited is an extraordinary company which, over the years, has expanded into payment services, property, advertising, e-commerce and gaming. Tencent’s WeChat has taken the company to another level. It is described as the heart of Tencent Holdings. Similar to apps of the western such as Facebook, Snapchat and Instagram, in the East (China), the social media add that dominates is WeChat.
WeChat while it has its similarities to the others, it has its differences. WeChat allows users to send money across China. The service is called WeChat Pay. It is used by 800 million Chinese. It is similar to Visa or MasterCard as persons can use it to purchase goods. WeChat is a cashless system utilized by even street vendors. How incredible is that?
Tencent Holding’s most popular game, Honour of Kings, now has 200 million monthly players. In 2016, the company purchased the majority stake in Clash of Clan’s Supercell and recently partnered with Nintendo. For a company that has not yet fully explored the western gaming market, but is considered the largest and most valuable gaming company in the world, the possibilities are endless for Tencent Holding.
We recommended TCEHY when the company was trading at US$23.17, now currently trading at US$ 59.73, a 157.79 percent gain in just one year!