Chinese internet giant Tencent surpasses Facebook in valuation

Tencent to Be The Foremost Chinese Tech Firm Priced Greater than $500B

Tencent has become the first Asian company to pass the 500-billion dollar milestone and is now the sixth most valuable firm in the world, with Apple, Alphabet and Microsoft currently occupying the top three places.

The Hong Kong-listed internet giant, known for its WeChat messaging app and online games, saw shares rally to 420 Hong Kong dollars ($53.76) on Monday.

Tencent shares closed more than 2% higher in Hong Kong on Tuesday, valuing the social media and gaming giant at around $522 billion, according to FactSet. Amazon has a market capitalization of $543 billion.

Tencent went public in 2004 and priced its shares at HK$3.70 (around $0.47 at the time). In general, the gain was up 69 percent year - on - year and returns ascended by 61 percent, thanks to Tencent's games industry. Instead, Tencent has made investment in different part of the U.S.as well as Asia. Last week, the Chinese company reported a 67 per cent year-on-year rise in net profit for the third quarter, beating market expectations. Tencent is a sprawling business that spans gaming, social media, news and content. One of its key products is China's most popular messaging service, WeChat, which is now approaching 1 billion users. Tencent's stock this year alone is up 126.69 percent. It has taken stakes in Snap and Tesla, and in several Asian based startups including Ola, a rival of Uber based in India.

Analysts have a positive view on Tencent. Barclays increased the price target to $59 from $49 for Tencent and increased its forecast for revenue for both 2018 and 2019. Alibaba's share price has also doubled over the past year.

Tencent's climb however has stretched historical valuations.

This article was first published on CNBC.

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