Tencent overtook Facebook in terms of market cap
On November 21, 2017, Chinese tech giant Tencent (TCEHY) overtook Facebook (FB) in terms of market cap (capitalization) and became the first Asian company to have a market cap of more than $500 billion.
TCEHY stock set record highs in November after producing forecast-beating quarterly results. The company’s bottom line surged 69% YoY (year-over-year), while its revenues rose 61% in the most recent quarter. Tencent stock has more than doubled in 2017.
Tencent stock corrected more than 10% since hitting all-time highs
Tencent stock has fallen more than 10% since setting its record high. The stock fell along with some of the big American technology stocks on Wednesday, November 29, 2017, as some investors booked profits.
Another reason behind the correction in the stock is the rebalancing of some indexes. Hong Kong’s Hang Seng Index limits any stock to a 10% weight in the index. Tencent’s weight in the index had reached 12% after the stock rose.
Tencent owns social media platform WeChat, which has nearly 1 billion monthly active users. WeChat is also used as a mobile-to-mobile payment platform. The company also owns some extremely popular gaming platforms such as King of Glory. The company is the biggest video game publisher in the world by revenue.