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Tencent Beats Out Alibaba as China’s Largest Tech Company

Tencent Holdings (OTCMKTS:TCEHY) has surpassed Alibaba Group Holding Ltd (NYSE:BABA) as the top tech company in China.

TencentThe former is worth a reported $249 billion, while Alibaba’s valuation is $3 billion lower at $246 billion. The move comes a day after Tencent reported its quarterly earnings results, which impressed.

The Guangdong-based tech firm reportedly earned 17 cents per share, in line with analysts’ projections. Additionally, revenue rose 52% year-over-year to 35.7 billion yuan ($5.38 billion), beating the consensus estimate by 2.5 billion yuan ($380 million).

Tencent impressed in a number of areas including a 32% increase in online game revenue, a 60% pop in online ad revenue and a 34% surge in the number of monthly active users of its popular messaging app WeChat.

And it appears as if there are no signs of the company’s slowing down as its social media platforms are only getting stronger. However, Alibaba hopes it will catch up with its rival as the tech company also reported impressive financial results last week.

For its first quarter, Alibaba posted earnings of 74 cents per share, topping expectations by 13 cents a share. The company raked in $4.838 billion in net sales, ahead of the revenue prediction of $4.61 billion.

If Alibaba reports another positive quarter, Western investors may be more willing to make the switch from other e-commerce giants such as Amazon.com, Inc. (NASDAQ:AMZN) to the Chinese company as Americans still don’t know their business as well its North American counterpart.

TCEHY stock rose 1.4% Thursday. BABA shares are trading flat.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/08/tencent-alibaba-baba-stock/.

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