The Chinese company Tencent has recently grown to an even more staggering size. The social media and gaming giant has eclipsed the American tech behemoths Intel, Cisco Systems, and Hewlett-Packard in size. It’s market cap has reached a staggering $150+ billion dollars, and is getting close to overtaking even AT&T at $169 billion. According to Paul Mozur, Tencent’s shares, which are traded on the Hong Kong Stock Exchange, are up more than 25% since the start of the new calender year.
It does not have many users outside of the Chinese market, but that market is so size-able that it has had no trouble growing to its current size rather quickly. I think this fact reinforces what so many of us have been writing about in these posts – China’s market is impossible to ignore and will only continue to attract more and more outside companies to try and break into it. Mozur also notes that a “CLSA report valuing Tencent’s messaging application WeChat at $64 billion, or about three times the amount that Facebook paid for Whatsapp.” It makes sense, then, that Tencent purportedly has the potential to make about $3 per WeChat user while Facebook only makes about $1 per Whatsapp user. Within this context, it will be a good idea to pay attention to Tencent’s growth, as it seems likely to remain a huge player in the internet industry whether or not it expands outside the Chinese market.