Tencent now Worth More than Facebook
Chinese tech firms are catching up to American firms faster than anticipated. As of Nov 21st, Tencent is now worth more than Facebook.
Update for you, the world’s most valuable companies by market capitalization (as of Nov 21)
All tech empires. That’s right, the most profitable firms in the world will also be those that influence how the data-first economy takes shape with increasing influence of not just digital, but artificial intelligence.
Tencent globally as the 5th largest public company by market cap makes many wonder if Tencent and Alibaba might beat even Amazon to become a 1-Trillion dollar company. We know Apple and Alphabat are on the cusp, and we also know many other Chinese firms are likely to enter the top club, including possibly Huawei. Huawei does patents, the closest to Amazon-style, I’ve yet seen of any tech firm.
WeChat is definately a more useful app, but Facebook is still the world’s most popular social network. While Chinese firms are showing clear signals they are beating out Silicon Valley ones, Tencent is unfortunately, still little known outside of China, even though WeChat has close to one billion users.
Tencent also invests in Chinese firms and startups, in a way that Facebook doesn’t and has an even great share on mobile with more entries in mobile gaming. Facebook has yet to show it can build hardware or lead the VR evolution it was supposed to do. Tencent’s WeChat advantage could be boosted by Beijing’s edic to for China to become a leader in Artificial Intelligence, and this should work to their advantage.
As China’s tentacles grow in the future of tech, they are also influencing U.S. firms more, with a 12% stake in Snap Inc. and a 5% stake in Tesla.
Tencent is a unique entity. This might also open the doors for Tesla to eventually build its products in China, and giving them access to China’s lucrative market.
Since Tencent owns large stakes in JD.com and Didi, Tencent isn’t just the first Asian company to rise above half a trillion dollars in value, it’s the grandmother company of the future of artificial intelligence.
Tencent is the GrandMother of a Chinese Tech Dynasty
Facebook believes it’s in a good position being part of a digital advertizing duopoly of the West, but with a huge majority of its revenue coming from that same source, it’s very vulnerable, unlike Tencent.
There’s a fairly good chance WeChat Pay becomes the most ubiquitous form of payment globally. Even in Malaysia, there’s 20 million WeChat users. That’s not nothing, it’s proof WeChat isn’t just a Chinese app…
As for QR code payments via WeChat, it’s likely WeChat Pay will beat out Alipay at home in China and scale easier around the world. It’s too close to call as of 2017.
WeChat has adoption rates of roughly 83% of all smartphone users in China.
It’s the most ubiquitous app in the world and has been for quite some time. Meanwhile Facebook’s mobile empire consists of an increasingly diffuse grip of apps such as Instagram, WhatsApp, Facebook Messenger, Facebook Local, tbh, and the flagship Facebook app itself. We’ve been waiting a long time for WhatsApp for business to arrive.
WeChat’s embedded payment feature enables the use of more services, which could drive global expansion.
With WeChat hitting saturation at home, China needs to learn how to think go-to-market for the entire world and in a new way.
Thanks to Mobike and Ofo, the duo of bike-sharing firms, China is getting better at this with each passing year.
WeChat still has to battle Line in Japan and Taiwan, and these are both way ahead in terms of business friendly apps to help monetization than WhatsApp or Facebook Messenger.
Facebook thinks it controls most of the world’s chat, but the future might be quite different if Tencent has its way. Facebook meanwhile tries to push its way into China, but unlike LinkedIn that occurring is far less likely.