China‘s Tencent just rejoined the $500 billion club

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(FinancialPress) — Chinese tech conglomerate Tencent – owner of massively popular Asian social platforms WeChat and QQ messaging as well as a plethora of payment apps and mobile games, reported its quarterly earnings. And the market was pleased.

Tencent‘s quarter results outperformed all forecasts. This sent its shares (TCEHY) skyrocketing to the tune of 6%. The company, ran by China‘s richest man, Ma Huateng (aka Pony Ma) recaptured the coveted valuation of over half a trillion dollars. 

Online ad sales rose an incredible 55%. Gaming sales revenue went up 26%. Cloud revenue doubled its previous figure. Profit as a whole soared an astounding 61%.

Tencent would be the Eastern equivalent of a conglomerate that would include Facebook, EA, Activision Blizzard, Whatsapp, Instagram and Snapchat.

Tencen‘t shares had slumped earlier in the year amidst fears of stagnating growth. Alas, the fears were completely quelled by the latest report.

The report also revealed that WeChat and its companion app, Weixin, have added 11% more users year-on-year – thus breaking the billion users a month threshold.

The company‘s gaming unit is also raking in cash from the explosively popular “Fortnite“. Fortnite, a multiplayer battle royale game, is one of the most popular games in the world at the moment. Tencent holds a piece of Epic Games – the company that developed the game.

 

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Ruben is a South American writer who focuses on the state of the cryptocurrency, cannabis and tech industries worldwide.

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