China’s gaming and social media giant Tencent has become more expensive compared to Facebook.
Shares for Tencent have rallied around 43% year-to-date compared to Facebook’s 12%, as per CNBC. In addition, the rally has added around US$200 billion [AU$278 billion] into Tencent’s value.
Tencent has acquired a lot of ventures including the live streaming industry with the beta launch Trovo Live to compete with Amazon’s Twitch.
In addition, the tech giant also racked up gaming deals including Lightspeed LA headed by a former Rockstar Games veteran and Leyou Technologies, which is a parent company of games such as Warframe and Gears Tactics.
China’s tech giants are slowly overtaking the U.S. counterparts
It looks like Tencent has become the second company that has surpassed Facebook after Alibaba a few weeks ago.
In addition, Kenny Wen, wealth management strategist at Everbright Sun Hung Kai told South China Morning Post that with rising the China GDP growth, more Chinese companies have a chance in entering the top 10 or top 100 companies as he added:
“This long-term trend will continue in the foreseeable future. However, the pandemic and worsening China-US relationship may make the situation complicated.”
This week, the U.S. and China had another clash which resulted in closing down their consulates in both Houston and Chengdu over national security concerns affecting both gold and the U.S. Dollar prices in the process.
The gaming and social media giant’s rally has also influenced the New York-listed Chinese search engine Sogou after Tencent proposed to take the firm private.
“We consider there will be more synergies between Sogou and Tencent in search and smart devices in the future.”
U.S. big tech companies to testify in Congress
Facebook, along with Apple, Amazon and Google are going to testify on Congress this week as they face a probe from the Federal Trade Commission (FTC). As for Amazon, it’s going to be the first time for CEO Jeff Bezos to attend a hearing and eyes may be on him as per CNN.
However, it looks like Facebook may have a lot of pressure on their hands as the U.S. elections are near.
In addition, the big social media giant still has some issues hanging in terms of privacy and election interference as well as removing misinformation and hate speech according to the CNBC video.
Because of the ongoing coronavirus pandemic, the U.S. Congress would investigate these big four companies if they have violated any “anti-trust” laws that are in place.
These big four have also outperformed the markets with positive returns from year-to-date while the rest of the businesses have gone down the drain.
Twitter had a short-term price gap down due to the recent bitcoin scam hack and it seems that U.S. investors and traders are going to be cautious with the big tech companies as they face Congress.
Featured image courtesy of Tencent/YouTube Screenshot