Tencent Holding TCEHY shares hit new 52-week highs Thursday, while Alibaba Group BABA shares continued to fall after the suspended Ant Group IPO, which led to a shift in leadership for the most valuable Chinese company.
Roundhill Investments Co-Founder Will Hershey pointed out that Tencent passed Alibaba as the most valuable Chinese company by market capitalization on Thursday morning.
Rise Of Tencent: Tencent shares are up over 50% in 2020 as the company is seeing strong growth in its mobile games business.
“Honor of Kings,” a mobile game from Tencent, passed 100 million active mobile users, according to IGN. That game and Tencent's "PUBG Mobile" have been among the highest-grossing mobile games for the year.
"Wild Rift," a mobile version of the popular game "League of Legends" is coming to the iPhone 12 from Apple Inc. AAPL and could see huge user numbers for Tencent.
The gaming segment made up 34% of Tencent's second-quarter revenue. Second-quarter revenue was up 29% year-over-year for Tencent.
The company could report impressive third-quarter gaming revenue on Nov. 12.
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Fall Of Alibaba: Shares of Alibaba are up 39% in 2020. Shares have fallen over the last few days as China suspended the IPO of Ant Group.
Ant Group was set to be the largest IPO in global history and is 30% owned by Alibaba Group.
Alibaba shares are down 2% to $288.43 on Thursday. Tencent's OTC shares were up 2.2% at $80.49.
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