Latest news with #TencentMusic
Yahoo
16-07-2025
- Business
- Yahoo
Robust Revenue Growth, Strategic Investments Drive Gains For Tencent Music Entertainment Group (TME)
Tencent Music Entertainment Group (NYSE:) is among the 13 Best Booming Stocks to Buy Now. The stock has had impressive year-to-date returns of nearly 80%, driven by strong financial performance and positive investor sentiment resulting from a recent strategic acquisition. A singing performer silhouetted on a spotlighted online stage. The Chinese music streaming giant reported a first-quarter revenue of RMB 7.36 billion, increasing 8.7% year-over-year and surpassing forecasts of RMB 7.27 billion, due to robust growth in revenues from online music services. The company's adjusted profit of RMB 1.37 also topped estimates of RMB 1.33. Tencent Music Entertainment Group (NYSE:TME) also saw strong subscriber growth during the quarter, mainly due to its investments in long-form content, such as audiobooks and podcasts, which is helping offset the weakness in its social entertainment business. CFRA Research analyst Ahmad Halim had the following to say on the company's Q1 2025 results: 'Tencent Music's continued innovation in AI-powered personalization, long-form audio and fan-driven commerce, combined with cost discipline and increased content scale, will support margin expansion and deeper monetization through the second half of 2025.' Investor sentiment has also been bolstered by a South Korean filing late in May that revealed Tencent Music Entertainment Group (NYSE:TME) was acquiring a 9.7% stake worth $177 million in K-pop agency SM Entertainment, making it the second-largest shareholder of the company. While we acknowledge the potential of TME as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Best German Stocks to Invest in Now and Goldman Sachs Stock Portfolio: 10 Large-Cap Stocks To Buy. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
Tencent Music Entertainment's (TME) Price Target Hiked to $26.20 Macquarie
Tencent Music Entertainment Group (NYSE:TME) is one of Goldman Sachs' top Chinese stock picks. On June 17, Macquarie analyst Ellie Jiang raised his stock price target to $26.20 from $17.10, reiterating an 'Outperform' rating. The analyst's bullish stance comes amid the expectation that Tencent Music Entertainment has what it takes to build a unique presence from content creation to entertainment consumption. The analyst also expects recent mergers and acquisitions to be value accretive to help drive music revenue momentum. Tencent Music Entertainment Group (NYSE:TME) operates online music and audio entertainment platforms focused on providing users with diverse and engaging music experiences. It offers music streaming, online karaoke, live streaming, and long-form audio services through popular apps like QQ Music, Kugou Music, Kuwo Music, and WeSing. While we acknowledge the potential of TME as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Biotech Stocks Screaming a Buy and 13 Best Software Stocks to Buy Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Entertainment
- Yahoo
Khalil Fong and Tanya Chua Named Best Male and Female Singers at the 3rd Wave Music Awards
On June 19, the 3rd Wave Music Awards – Honor Ceremony concluded splendidly at the Beijing Performing Arts Center. Initiated by the Wave Music Committee and hosted by the Tencent Music Entertainment Group (TME), this year's Awards upheld the principle of 'Jointly Establishing Artistic and Aesthetic Standards for the Music Industry,' with work quality as the sole evaluation criterion, aiming to create a professional, fair, and authoritative annual music event, and ultimately recognizing the finest Chinese music and artists of 2024. At the ceremony, prominent creators such as Sandee Chan, Gu Jianfen, Zhang Yadong, and Yee Kar Yeung served as award presenters. They were joined by numerous musicians and bands, including Tanya Chua, Hanggai Band, and More Feel, along with nearly a hundred media representatives from home and abroad, including those from People's Daily and Xinhua Net, all witnessing a landmark moment for the Chinese music scene. More from Billboard Here's Why This Coldplay Song Just Hit the Hot 100 for the First Time, 25 Years After Its Release Sabrina Carpenter Unveils Alternate 'Man's Best Friend' Cover - and This Time, It's 'Approved by God' Cardi B Shows Off Castle That Boyfriend Stefon Diggs Rented for Her in France: 'This Is Insane' The highly anticipated Big Three Honors — Song of the Year, Production of the Year, and Album of the Year — were awarded to Zhou Shen's 'Little Bliss' (小美满), Shan Yichun's 'Chun Girl' (纯妹妹), and Khalil Fong's The Dreamer (梦想家). Notably, Zhou Shen's 'Little Bliss' also won Best Composition and Best Film/TV Song. In terms of artist honors, Khalil Fong was awarded Best Male Singer in recognition of his outstanding musical contributions during his lifetime, while Tanya Chua was named Best Female Singer. The Best Duo/Group and Best New Artist went to Hanggai Band and JUD Chen, respectively. To encourage excellence in music creation and production, the Wave Music Awards introduced dedicated honors to celebrate the contributions of behind-the-scenes professionals. Among them, 'Factory' (工厂) by the God of Henan Rap (河南说唱之神) became the biggest winner, taking home awards for Best Single Production, Best Music Video, and Best Rap Song. In addition, in the language and genre honors that highlight the diverse development of Chinese music, the Wave Music Awards conducted a selection across various styles, including pop, rock, folk, and electronic. Tibetan singer Gongba's album Flower of Life (生命之花) and Ma Di's single 'Life Park' (人生公园) won Best Minority Language Album and Best Folk Song, respectively. What's worth highlighting is that at this year's Wave Music Awards ceremony, over ten different artists/musician groups delivered exquisite stage performances in various styles. Tanya Chua's 'Finland' (芬兰距离) conveyed the loneliness of being so close yet so far in modern love through its chilly and ethereal melody. Wang Yitai performed 'Incompetent Genius' (不称职的天才) from his Best Rap Album Love Me Later, expressing his outlook and reflections on the world through lyrics and composition. Hanggai Band delivered a live performance of the title track 'Turn the Tide' (时来运转) from their Best World Music Album, recreating the majestic vitality of grassland music. These diverse musical performances further showcased the rich and multifaceted creative landscape of Chinese music. Khalil Fong's final album, The Dreamer, earned him the honors of Album of the Year and Best Male Singer. Khalil Fong's family attended the event to accept the honors on his behalf, and the heartfelt stories and spirit of Khalil they shared in their speech touched both industry insiders and many in the audience. This year's Wave Music Awards not only provided a shining stage for outstanding artists and exceptional works but also set a high-level aesthetic reference and a professional value benchmark for the entire industry. Looking ahead, the Wave Music Committee will continue to explore the essence of music creation, going upstream in the surging tide of the era, leading Chinese music to continue growing upward. Best of Billboard Chart Rewind: In 1989, New Kids on the Block Were 'Hangin' Tough' at No. 1 Janet Jackson's Biggest Billboard Hot 100 Hits H.E.R. & Chris Brown 'Come Through' to No. 1 on Adult R&B Airplay Chart
Yahoo
21-06-2025
- Business
- Yahoo
Spotify Stock Has Soared 57% in 2025, but Here's 1 Big Reason Investors Should Be Cautious
Spotify operates the world's largest music streaming platform, and it's investing heavily in technology to maintain its edge over the competition. Spotify continues to deliver strong financial results, driving its stock to a 57% gain in 2025 already. Spotify stock is now extremely expensive by at least two widely used valuation metrics, which could limit its upside from here. 10 stocks we like better than Spotify Technology › The S&P 500 (SNPINDEX: ^GSPC) was down by as much as 15% earlier this year on the back of simmering global trade tensions, which were ignited by President Trump's "Liberation Day" tariffs in April. The index has since recovered its losses, and it's now sitting on a modest year-to-date gain of 2%. But investors who bought Spotify (NYSE: SPOT) stock at the start of the year have earned an eye-popping 57% return as of this writing (June 18). In fact, the stock never dipped into the red at all, despite the turmoil in the broader market. Shares of the music streaming giant are now trading at a record high, and while the company's future looks extremely bright, there is one glaring reason investors should be cautious from here. According to Statista, Spotify has a 31.7% global market share in the music streaming industry. It's a long way ahead of Tencent Music in second place, with 14.4% of the market. Most music streaming platforms feature very similar content catalogs, so they have to compete with one another on price, technology, and by offering other content formats. That's why Spotify invested heavily to become one of the world's top podcast platforms. Plus, during the first quarter of 2025 (ended March 31), the company said users spent 44% more time watching video content compared to the year-ago period, so it introduced a new compensation model to encourage creators to make video versions of their podcasts to capitalize on that engagement. This new system paid out over $100 million during the first quarter alone, which could result in a flood of new content from creators who want to earn more money. Spotify is also investing heavily in artificial intelligence (AI) to deliver the best user experience from a technological perspective. AI is a big part of the platform's recommendation engine, because it quickly learns what each user likes and feeds them more of it. But Spotify has also launched a series of user-facing features powered by AI like AI Playlist, which can generate a list of songs based on a simple prompt from the user, whether it be a movie, feeling, animal, or even a color. These AI features are designed to keep users engaged so they spend more time on the platform, which increases the chances Spotify becomes something they can't live without. At the end of the first quarter of 2025, Spotify had 268 million paying subscribers, and 423 million free users monetized through advertising. The paying subscriber base is growing slightly faster, which is a big positive because it accounts for 90% of the company's revenue. According to Wall Street's consensus estimate (provided by Yahoo! Finance), Spotify could generate a record $20.5 billion in revenue during 2025, which would be a 13.7% increase from the prior year. Analysts then expect revenue to come in at $23.7 billion in 2026, representing an accelerated growth rate of 15.7%. But the real growth story is on the bottom line, because Spotify is carefully managing its costs to drive profitability. The company's total operating expenses fell by 2% during the first quarter, which helped send its free cash flow soaring by a whopping 158% year over year to $615 million. Wall Street thinks Spotify will deliver $10.33 in earnings per share (EPS) in 2025, which would be a 63% jump from last year. Analysts will then look for $14.88 in EPS in 2026, representing a further 44% growth. I've painted a very positive picture of Spotify so far, but investors need to carefully consider its valuation before buying the stock. It's trading at a price-to-sales (P/S) ratio of 8.6, which is uncharted territory, because it's the most expensive level since the stock went public in 2018: Plus, based on Spotify's trailing-12-month EPS, its stock is trading at a hefty price-to-earnings (P/E) ratio of 119. In other words, it's an eye-popping five times more expensive than the S&P 500 index, which trades at a P/E ratio of 23.7. Even if we value Spotify stock using Wall Street's forecast EPS for 2025 and 2026, the stock is still trading at forward P/E ratios of 69 and 48 for those years, respectively. In other words, if you buy Spotify stock today and the company's financial results come in exactly as Wall Street expects, it will still be twice as expensive as the S&P 500 in 18 months from now. That doesn't leave much room for upside. Simply put, Spotify stock just doesn't seem like a great value for investors who want to see gains in the next couple of years. But the picture might look a little different for investors with a longer-term horizon, because CEO Daniel Ek previously issued a forecast suggesting the company could achieve $100 billion in annual revenue by 2032. That would be a fivefold increase from where Spotify's 2025 revenue is expected to come in, so its stock actually looks cheap right now from that perspective. However, several things can change over the next seven or eight years -- new competitors might emerge, and technologies like AI could change the way we consume content entirely. As a result, buying Spotify stock at the current level still takes some resolve. Before you buy stock in Spotify Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Spotify Technology wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Spotify Technology and Tencent. The Motley Fool has a disclosure policy. Spotify Stock Has Soared 57% in 2025, but Here's 1 Big Reason Investors Should Be Cautious was originally published by The Motley Fool
Yahoo
20-06-2025
- Business
- Yahoo
Tencent Music Shares Double on Break From China Price Cut Script
(Bloomberg) -- China tech investors weary of the nation's relentless price competition can look to one pocket that's thriving by moving in the opposite direction: online music. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports How E-Scooters Conquered (Most of) Europe Hong Kong-listed shares of Tencent Music Entertainment Group and smaller rival NetEase Cloud Music Inc. have more than doubled since the end of 2023, outperforming most Chinese internet peers. That's come as they shift to focus on monetization of their loyal user bases while beefing up their podcast and live event offerings. Tencent Music has notched four-straight quarters of growth in revenue per paying user by successfully driving subscribers to more expensive plans. That's a refreshing break from the frequent headlines on deep price cuts for EVs and e-commerce that has sparked volatility in China tech stocks in recent years. 'Music is becoming more important to the lives of young people in China, and you're not going to just save one or two yuan to abandon all your playlists and jump to another platform,' said Ivan Su, an analyst at Morningstar Inc. 'The monthly subscription price — which costs about the same as a cup of coffee — is very low.' The Chinese online music industry has consolidated over the past few years, leaving the units of Tencent Holdings Ltd. and NetEase Inc. in a virtual duopoly. Spotify is blocked by a firewall in China. Tencent Music is the leader with about 555 million monthly active users as of the end of March, some 22% of which were paid subscribers. That compares with a paid penetration rate of around 40% for Spotify. One of the key planks of Tencent Music's monetization strategy is its Super Premium VIP tier, where users pay roughly $4 per month for exclusive content plus early access to special artist merchandise and live events. Subscribers pay about $2 for a basic monthly subscription. The percentage of premium members relative to all paying users could rise to 19% in 2027 from 12% this year, Goldman Sachs Group Inc. analysts including Lincoln Kong wrote in a note this week. The bank added they expect 10% growth in average revenue per paid user this year and high-single digits for 2026 onward. Like Spotify, Tencent Music is also making moves into other services. This month it announced a plan to buy Chinese podcasting startup Ximalaya, and in May it disclosed its purchase of a stake in South Korean K-pop agency SM Entertainment Co. 'There are a lot of innovative ways for the leading players to monetize their users, and all of these are very affordable items in this environment,' said Agnes Ng, a portfolio specialist at T. Rowe Price Group Inc. 'With only two major players left in the market, competition is very benign and market share is stable.' Morningstar's Su said that NetEase Cloud's stock has outperformed as it 'turned profitable a lot quicker than people expected.' On the other hand Tencent Music has a 'much more robust content library,' with a broader user base. The subsector's big gains have made the stocks somewhat pricier. Tencent Music shares are trading at 21 times forward earnings estimates, above their three-year average but well below Spotify's nearly 60 times. NetEase Cloud Music is at 24 times. Tencent Music's valuations 'still look attractive, particularly when compared to Spotify,' while content-related stocks overall have been enjoying a premium due to lower exposure to tariffs, said Kevin Net, head of Asian equities at Financiere de L Echiquier. 'I think investors like its 70%+ market share in an underpenetrated market, with potential for price increases.' Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants ©2025 Bloomberg L.P. Sign in to access your portfolio
