Tencent falls from fresh record high as it battles Alibaba for title of Asia’s biggest company – CNBC

People visit the Tencent stand during the 1st Digital China Summit at Strait International Conference and Exhibition Center on Apr. 22, 2018 in Fuzhou, China.

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Chinese internet behemoth Tencent’s stock briefly hit new records on Wednesday, bringing it into a tight race with rival Alibaba for the title of Asia’s biggest company by market cap.

In early trade on Wednesday, shares of Tencent soared past 500 Hong Kong dollars per share, surpassing its previous record high of 498.60 Hong Kong dollars set on Tuesday. However, it later lost those gains and closed 1.33% lower. Meanwhile, Hong Kong-listed shares of Alibaba edged 0.64% higher. 

At the intraday highs of their respective Hong Kong-listed shares, both Tencent and Alibaba’s market cap stood at 4.82 trillion Hong Kong dollars (approx. $621.92 billion). That’s according to CNBC calculations, multiplying the stock price by number of shares outstanding.

Strength in Tencent’s advertising business

Still, Tencent could see further gains. On Tuesday, analysts at Bernstein raised their target price to 570 Hong Kong dollars per share, representing upside of almost 13% from the stock’s Wednesday high. Meanwhile, Nomura’s price target is 531 Hong Kong dollars per share, implying about 5% upside.

“Recent meetings have given comfort to investors that Tencent’s advertising business is performing stronger than expected,” Neil Campling, Mirabaud Securities’ head of technology, media and telecommunications, told CNBC in an email on Tuesday.

“We think there were many who thought ByteDance would