China's "Spotify" Has Significantly Reduced Its Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 03 2026
0mins
Should l Buy TME?
Source: Marketbeat
Tencents' Market Position: Tencent Music Entertainment Group is the leading music streaming service in China, boasting approximately 528 million monthly active users and generating $1 billion in revenue in its latest quarter, significantly outperforming its main competitor, NetEase.
Investor Concerns: Despite strong revenue growth, Tencent's stock has fallen over 60% from its 52-week high, raising concerns among investors about its future growth potential, particularly as user numbers have started to decline.
User Dynamics: While total users are decreasing, paying users have increased by 5.3% year-over-year, indicating a shift towards higher-value subscriptions, which is contributing to revenue growth despite the overall user decline.
Competitive Landscape: The emergence of Soda Music as a competitor targeting lower-tier users poses a threat to Tencent, although Tencent's focus on premium services and partnerships with top-tier music labels may help maintain its market dominance.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TME?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 9.730
Low
21.00
Averages
26.13
High
29.00
Current: 9.730
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.
Tencent Music to Report Q1 2026 Financial Results on May 12
- Earnings Report Schedule: Tencent Music Entertainment Group is set to release its unaudited financial results for Q1 2026 before the U.S. market opens on May 12, 2026, reflecting the company's commitment to transparency and investor communication.
- Management Webinar: On the same day at 7:00 A.M. Eastern Time or 7:00 P.M. Beijing/Hong Kong Time, the management will host a webinar to analyze the company's business and financial performance, aiming to bolster investor confidence.
- Participant Registration Process: Participants wishing to join the webinar must register online in advance, receiving an email with meeting ID and link upon registration, ensuring smooth access and enhancing interaction during the session.
- Investor Relations Website: The company's investor relations website will provide live and archived webcasts of the webinar, further enhancing information exchange between the company and its investors, demonstrating the company's dedication to its shareholder base.
See More
Tencent Music to Report Q1 2026 Financial Results
- Earnings Report Schedule: Tencent Music Entertainment Group will release its unaudited financial results for Q1 2026 before the U.S. market opens on May 12, 2026, providing investors with the latest insights into its business performance and financial health.
- Management Webinar: The company's management will host a webinar on the same day at 7:00 A.M. Eastern Time or 7:00 P.M. Beijing/Hong Kong Time, aimed at discussing financial performance and future strategies, thereby enhancing investor confidence.
- Participant Registration Details: Participants wishing to join the webinar must register online in advance, and upon registration, they will receive an email with meeting ID and link, ensuring smooth access to the meeting.
- Investor Relations Website: Tencent Music's investor relations website will offer live and archived webcasts of the webinar, further enhancing transparency and providing ongoing updates for investors.
See More
Delta Air Lines Raises Baggage Fees Amid Rising Fuel Costs
- Earnings Season Kickoff: Delta Air Lines is set to release its earnings report on Wednesday morning, marking the start of the earnings season for major airlines, which is expected to significantly impact market sentiment.
- Baggage Fee Increase: In response to rising fuel prices, Delta has announced an increase in checked baggage fees, a move that could affect customer travel choices and potentially boost company revenues amid cost pressures.
- Competitive Comparison: Delta's stock is down 5.5% in 2026, which is relatively better compared to American Airlines and United Airlines, which have seen declines of nearly 30% and 20% respectively, highlighting the intense competition in the airline industry.
- Chinese Tech Stocks Struggling: The KraneShares CSI China Internet ETF (KWEB) has dropped over 17% year-to-date, with notable laggards like Tencent Music, Trip.com, and NetEase facing significant losses, reflecting the challenges within the Chinese tech sector.
See More
China's "Spotify" Has Significantly Reduced Its Prices
Tencents' Market Position: Tencent Music Entertainment Group is the leading music streaming service in China, boasting approximately 528 million monthly active users and generating $1 billion in revenue in its latest quarter, significantly outperforming its main competitor, NetEase.
Investor Concerns: Despite strong revenue growth, Tencent's stock has fallen over 60% from its 52-week high, raising concerns among investors about its future growth potential, particularly as user numbers have started to decline.
User Dynamics: While total users are decreasing, paying users have increased by 5.3% year-over-year, indicating a shift towards higher-value subscriptions, which is contributing to revenue growth despite the overall user decline.
Competitive Landscape: The emergence of Soda Music as a competitor targeting lower-tier users poses a threat to Tencent, although Tencent's focus on premium services and partnerships with top-tier music labels may help maintain its market dominance.
See More
Jay Chou's New Album Sales Exceed 100 Million RMB
- Album Launch Success: Jay Chou's 16th studio album, 'Children of the Sun,' premiered on March 25 with exclusive release on Tencent Music, achieving over 100 million RMB in sales since pre-orders began on March 19, underscoring his lasting market appeal.
- Diverse Tracklist: The album features 13 tracks, including 12 new compositions that blend classical, Chinese-style music, romantic ballads, and Western rap, with a special song dedicated to his youngest daughter, showcasing his musical versatility.
- Integrated Promotion: Tencent Music launched teaser content and interactive fan activities online, while offline, themed installations were activated in 48 cities across 74 landmark locations, including drone light shows, enhancing fan engagement and album visibility.
- Global Marketing Strategy: The long-term partnership between Tencent Music and JVR Music has accelerated the global rollout of the album, with plans for large-format digital billboards in Times Square and major commercial districts, further expanding the album's international reach.
See More
Tencent Music's Price Target Cut to $23 Amid Competitive Concerns
- Price Target Adjustment: Mizuho reduced Tencent Music's price target from $28 to $23 while maintaining an Outperform rating, indicating a potential upside of 131%, which reflects cautious market sentiment regarding the company's future performance.
- Increased Competitive Pressure: UBS downgraded Tencent Music from Buy to Neutral and cut its target price from $26 to $13, highlighting concerns over the company's growth in a competitive landscape, particularly due to the impact of AI technologies.
- Earnings Report Impact: Following the fourth-quarter earnings report, analysts noted the company's struggle to balance short-term performance metrics with long-term strategic execution, which negatively affected its outlook amid competition from rapidly growing platforms like Soda Music.
- User Growth Constraints: Despite a sales boost in the fourth quarter, Tencent Music faces limitations in increasing basic subscribers and ARPPU, with the emergence of AI-generated music intensifying competitive pressures and impacting the company's long-term growth potential.
See More
Tencent Music to Report Q1 2026 Financial Results on May 12
- Earnings Report Schedule: Tencent Music Entertainment Group is set to release its unaudited financial results for Q1 2026 before the U.S. market opens on May 12, 2026, reflecting the company's commitment to transparency and investor communication.
- Management Webinar: On the same day at 7:00 A.M. Eastern Time or 7:00 P.M. Beijing/Hong Kong Time, the management will host a webinar to analyze the company's business and financial performance, aiming to bolster investor confidence.
- Participant Registration Process: Participants wishing to join the webinar must register online in advance, receiving an email with meeting ID and link upon registration, ensuring smooth access and enhancing interaction during the session.
- Investor Relations Website: The company's investor relations website will provide live and archived webcasts of the webinar, further enhancing information exchange between the company and its investors, demonstrating the company's dedication to its shareholder base.
See More
Tencent Music to Report Q1 2026 Financial Results
- Earnings Report Schedule: Tencent Music Entertainment Group will release its unaudited financial results for Q1 2026 before the U.S. market opens on May 12, 2026, providing investors with the latest insights into its business performance and financial health.
- Management Webinar: The company's management will host a webinar on the same day at 7:00 A.M. Eastern Time or 7:00 P.M. Beijing/Hong Kong Time, aimed at discussing financial performance and future strategies, thereby enhancing investor confidence.
- Participant Registration Details: Participants wishing to join the webinar must register online in advance, and upon registration, they will receive an email with meeting ID and link, ensuring smooth access to the meeting.
- Investor Relations Website: Tencent Music's investor relations website will offer live and archived webcasts of the webinar, further enhancing transparency and providing ongoing updates for investors.
See More
Delta Air Lines Raises Baggage Fees Amid Rising Fuel Costs
- Earnings Season Kickoff: Delta Air Lines is set to release its earnings report on Wednesday morning, marking the start of the earnings season for major airlines, which is expected to significantly impact market sentiment.
- Baggage Fee Increase: In response to rising fuel prices, Delta has announced an increase in checked baggage fees, a move that could affect customer travel choices and potentially boost company revenues amid cost pressures.
- Competitive Comparison: Delta's stock is down 5.5% in 2026, which is relatively better compared to American Airlines and United Airlines, which have seen declines of nearly 30% and 20% respectively, highlighting the intense competition in the airline industry.
- Chinese Tech Stocks Struggling: The KraneShares CSI China Internet ETF (KWEB) has dropped over 17% year-to-date, with notable laggards like Tencent Music, Trip.com, and NetEase facing significant losses, reflecting the challenges within the Chinese tech sector.
See More
China's "Spotify" Has Significantly Reduced Its Prices
Tencents' Market Position: Tencent Music Entertainment Group is the leading music streaming service in China, boasting approximately 528 million monthly active users and generating $1 billion in revenue in its latest quarter, significantly outperforming its main competitor, NetEase.
Investor Concerns: Despite strong revenue growth, Tencent's stock has fallen over 60% from its 52-week high, raising concerns among investors about its future growth potential, particularly as user numbers have started to decline.
User Dynamics: While total users are decreasing, paying users have increased by 5.3% year-over-year, indicating a shift towards higher-value subscriptions, which is contributing to revenue growth despite the overall user decline.
Competitive Landscape: The emergence of Soda Music as a competitor targeting lower-tier users poses a threat to Tencent, although Tencent's focus on premium services and partnerships with top-tier music labels may help maintain its market dominance.
See More
Jay Chou's New Album Sales Exceed 100 Million RMB
- Album Launch Success: Jay Chou's 16th studio album, 'Children of the Sun,' premiered on March 25 with exclusive release on Tencent Music, achieving over 100 million RMB in sales since pre-orders began on March 19, underscoring his lasting market appeal.
- Diverse Tracklist: The album features 13 tracks, including 12 new compositions that blend classical, Chinese-style music, romantic ballads, and Western rap, with a special song dedicated to his youngest daughter, showcasing his musical versatility.
- Integrated Promotion: Tencent Music launched teaser content and interactive fan activities online, while offline, themed installations were activated in 48 cities across 74 landmark locations, including drone light shows, enhancing fan engagement and album visibility.
- Global Marketing Strategy: The long-term partnership between Tencent Music and JVR Music has accelerated the global rollout of the album, with plans for large-format digital billboards in Times Square and major commercial districts, further expanding the album's international reach.
See More
Tencent Music's Price Target Cut to $23 Amid Competitive Concerns
- Price Target Adjustment: Mizuho reduced Tencent Music's price target from $28 to $23 while maintaining an Outperform rating, indicating a potential upside of 131%, which reflects cautious market sentiment regarding the company's future performance.
- Increased Competitive Pressure: UBS downgraded Tencent Music from Buy to Neutral and cut its target price from $26 to $13, highlighting concerns over the company's growth in a competitive landscape, particularly due to the impact of AI technologies.
- Earnings Report Impact: Following the fourth-quarter earnings report, analysts noted the company's struggle to balance short-term performance metrics with long-term strategic execution, which negatively affected its outlook amid competition from rapidly growing platforms like Soda Music.
- User Growth Constraints: Despite a sales boost in the fourth quarter, Tencent Music faces limitations in increasing basic subscribers and ARPPU, with the emergence of AI-generated music intensifying competitive pressures and impacting the company's long-term growth potential.
See More
