What Happened: Tencent Holdings Ltd., the Chinese gaming and internet titan, has been ranked among the world’s top five largest tech companies out of 164 titles on Forbes’ Global 2,000 list. With a $414.3 billion market value, Tencent was the only Chinese business to make the top 20, coming in at fifth place after Apple, Alphabet Inc., Microsoft, and Meta. The company saw its sales increase by 24 percent to $86.9 billion over the past year but is now valued at about $414.3 billion, which is down from $773.8 billion in 2021. However, even with this loss, Tencent stock is still trading at $45.85 USD at the time of reporting.
The Jing Take: Despite the company’s recent battle with tough market conditions and loss in value, Tencent has earned its highest placement yet. With the company’s sales increasing, the question stands as to how Tencent has maintained this upward trajectory while being wedged between an economic downturn, a crackdown on tech and gaming companies, and a nationwide lockdown.
First off, the company continues to rank as one of the most forward-thinking tech businesses globally, boasting an impressive portfolio. Its WeChat social messaging app has more than 1.2 billion monthly active users, while Tencent Music claims over 841 million active users and owns the majority of China’s music services. The Shenzhen-based conglomerate is also consistently at the forefront of innovation and product development that keeps up with the next-gen’s expectations. Tencent was one of the first companies to acknowledge the exponential growth within the global fandom economy, as well as distinguish itself from competitors with cultivated, unique marketing strategies, such as partnering with Burberry to create skins for Honor of Kings last year.
Additionally, the company is home to Tencent Huiju Luxury (previously known as Famous Products), which offers WeChat users an easy-to-navigate shopping system brimming with products and services. This luxury component of the centralized e-commerce marketplace, Tencent Huiju, is an opportunity for Tencent to establish an international presence within the luxury sector, on top of forming relationships with premium brands. With a focus on redefining the digital shopping experience through a user-prioritized business model, Tencent remains as one of the most progressive tech companies that’s dialed in to the next iteration of the internet.
This growth in international visibility only points towards an exciting, and lucrative, future for Tencent. Meanwhile, news that Chinese tech companies have received some respite on the stock market this week — after promising signs of economic recovery — heralds an optimistic fate for the tech and gaming industry. If Tencent’s latest ranking is anything to go by, this could just be the beginning of its global takeover.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.