Tencent Music falls 5.25% as it hits a 20-day low
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 21 2024
0mins
Should l Buy TME?
Source: SeekingAlpha
Tencent Music Entertainment Group's stock price dropped by 5.25% during regular trading, hitting a 20-day low. This decline occurs amid a mixed market environment, with the Nasdaq-100 up 0.38% and the S&P 500 down 0.02%.
The drop in Tencent Music's stock price is attributed to broad market weakness, as the overall market sentiment has not favored the stock despite the Nasdaq's gains. Investors appear to be rotating away from tech stocks, which has impacted Tencent Music negatively.
This movement suggests that investors are cautious about the tech sector's performance, leading to a reevaluation of positions in companies like Tencent Music. The stock's recent performance may prompt investors to consider potential recovery strategies or reassess their investment in the company.
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Analyst Views on TME
Wall Street analysts forecast TME stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 13.730
Low
21.00
Averages
26.13
High
29.00
Current: 13.730
Low
21.00
Averages
26.13
High
29.00
About TME
Tencent Music Entertainment Group is a holding company mainly engaged in the provision and operation of online music entertainment platform. The Company is mainly engaged in the provision of online music services, social entertainment services and other services. The Company operates four major product brands, QQ Music, Kugou Music, Kuwo Music and WeSing, through which the Company provides online music and social entertainment services to address the music entertainment needs of audience in China. The Company also offers Lazy Audio, the dedicated long-form audio app as a complement to the flagship music-centric product portfolio.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Source of Rating Updates: A complete view of all analyst rating changes can be found on our analyst ratings page, providing comprehensive market insights to help investors make more informed investment choices.
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- Market Reaction Expectations: The changes in analyst ratings may lead to price volatility in the respective stocks, prompting investors to pay close attention to these shifts to capitalize on market opportunities, especially in the current economic climate.
- Source of Rating Updates: A complete view of all analyst rating changes can be found on our analyst ratings page, providing comprehensive market insights to help investors make more informed investment choices.
- Investment Advice Reminder: While rating changes are provided, Benzinga does not offer specific investment advice, and investors should assess risks independently before making decisions.
See More
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- JD.com Performance: JD.com has an RSI of 24.42, with shares around $25.21, down 1.68% on the day, reflecting the overall pressure on Chinese consumer and internet stocks, potentially providing short-term trading opportunities for investors.
- Broad Market Overselling: iShares China Large-Cap ETF (FXI) posts an RSI of 24.99, trading near $35.89, indicating that selling pressure has broadened from individual stocks to major Chinese benchmarks, which may influence investors' regional allocation decisions.
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See More
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- Shareholder Exit: Keystone Investors sold its entire holding of 2,243,614 shares in Tencent Music during Q4 2026, with an estimated transaction value of $52.37 million, resulting in a complete exit that previously represented 6.1% of its AUM.
- Portfolio Reallocation: Post-sale, Tencent Music now accounts for 0% of Keystone's reportable AUM, while top holdings include Google at $150.65 million (13.5% of AUM) and Nvidia at $100.91 million (9.1%), indicating a significant shift in investment strategy.
- Market Performance: As of February 12, 2026, Tencent Music shares were priced at $15.15, reflecting a 21.1% increase over the past year, outperforming the S&P 500 by 8.2 percentage points, signaling renewed investor interest in Chinese internet firms.
- Industry Transition: The Chinese music market is shifting from free streaming to paid subscriptions, positioning Tencent Music at the forefront of this transition, with future growth reliant on subscriber expansion and average revenue per user amidst competition from NetEase Cloud Music.
See More
Keystone Investors Sells Tencent Music Shares
- Share Sale Details: Keystone Investors sold 2,243,614 shares of Tencent Music Entertainment Group in Q4 2026, with an estimated transaction value of $52.37 million, reflecting a complete exit from the position and a 4.7% decline in reportable assets under management (AUM).
- Asset Management Shift: Following the sale, Keystone's stake in Tencent Music dropped from 6.1% to 0%, indicating a significant shift in portfolio allocation that may impact future investment strategies and risk management practices.
- Market Performance Analysis: As of February 12, 2026, Tencent Music's stock was priced at $15.15, up 21.1% over the past year, outperforming the S&P 500 by 8.2 percentage points, highlighting the company's competitive position and growth potential in the Chinese digital music market.
- Future Outlook: Tencent Music is at the forefront of China's transition from free streaming to paid subscriptions, with future growth dependent on subscriber increases and average revenue per user, despite competitive pressures from NetEase Cloud Music.
See More
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- Lunar New Year Promotions: ByteDance is giving away 100,000 prizes for its Doubao AI model during the Lunar New Year, including red packets worth CNY8,888 (approximately $1,280), highlighting the fierce competition in the AI market.
- Massive Investments: Baidu allocated CNY500 million (around $72 million) for its Ernie chatbot, Tencent doubled that to CNY1 billion (about $145 million), and Alibaba's investment reached CNY3 billion (approximately $434 million), all aimed at attracting users to try new products.
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