Tencent Holdings – as the biggest social and gaming network of China, has recently exceeded the market $500 billion valuation of Facebook. It is now also the first Asian technology company to have surpassed the said market value.
Such momentous breakthrough has rooted from the news of the company’s recent e-payment licensure for local transactions in Malaysia and its possible launch in the coming year, Senior Vice President S.Y. Lau told reports.
"Malaysia is actually quite large in the sense that we have 20 million WeChat users, huge potential, and the market is quite warm towards internet products from China," Lau said.
Tencent has also been finding growth opportunities outside China. However, the company did not get such through product expansions. The tech giant achieved such through various global investments like in US and Asia. It recently acquired stakes in companies such as Tesla and Snap. Tencent also invested in several start-ups in Asia, counting the rivaling Uber of India - Ola.
Various analysts have been optimistic with the shares of Tencent. It has also exceeded the estimates in its latest quarterly report which was just released this month. Barclays elevated its price mark for Tencent to $59 from $49, and expanded its revenue estimates for both 2018 and 2019.
Tencent's Famed Social Media App: WeChat
"We mainly attribute accelerating revenue growth to the continued monetization improvement across multiple key business segments, such as gaming, video, and payment services, and note that user growth is still strong," Barclays told reports.
Tencent Holdings’ performance in its US Trades has recently reached new highs as supported by the news above. The stock has been able to maintain another bullish performance by adding 3.94% to 2.0600. This trade finished at 54.36 respectively.
The tech company was also found breaking towards the 80’s region of its Relative Strength Index making the stock heavily overbought at the time being. It is specified in indicator that the company reached 81.72 which again is a region that makes one stock overbought.
The Coppock curve of the company had a momentous performance as well. The stock managed to jump beyond the 20’s region recently. At 25.88, a buy would be advised since the stock performed at the high levels of the positive region.
FSM News is a daily updated news website about the happenings in the stock market, financial realms and the world economy. Subscribe to further educate yourself about the field that you are to partake in. FSM News is here for you.