Facebook, which owns Facebook, the world's most popular social media platform, has more than 2 billion users worldwide and has two very popular social media platforms, Instagram and WhatsApp.
Tencent own social media platform, WeChat has nearly 1 billion users, most users are in China. As Western rivals such as Facebook and Twitter are banned in China, WeChat is the largest in the world's most populous nation.
Investors are optimistic about Tencent is not just focused on the company's position on social media can not be shaken. Tencent has expanded into other areas of business, including smart phone games, mobile payment and streaming music, which have generated lucrative profits for Tencent.
On Wednesday night, the company's third-quarter earnings showed a quarter-on-quarter profit increase of nearly 70% over the same period last year, well above analysts' forecasts.
Tencent has invested heavily in other high-tech companies around the world, in addition to investing in start-ups in Asia, holding a 5% stake in electric car maker Tesla and acquiring a 12% stake in SnapChat's parent, Snap. .
Before Tencent announced its third quarter earnings, analysts expect Tencent's share price will continue to rise. Some analysts predict that Chinese technology companies will soon pass a milestone of $ 500 billion in market capitalizationAmazon($ 550 billion in market capital) belong to the same echelon, but it will take some time to catch up with Apple ($ 880 billion in market capitalization) and Alphabet, the parent company of Google ($ 720 billion in market capitalization).
Tencent market value of 500 billion US dollars mark at an alarming rate, because six months ago its market capitalization reached 300 billion US dollars. Of course, Tencent is not the only Chinese technology giant with a market capitalization of nearly 500 billion U.S. dollars. Alibaba.com, a powerful rival to Amazon, has a market capitalization of about $ 465 billion and its share price has more than doubled this year.
However, soaring share prices and some "bright-blind" public companies have raised investor concerns about the market bubble that could come from technology stocks that surge in Chinese share prices.