What’s Affected Tencent Music Entertainment Stock Recently?


Jun. 25 2019, Updated 12:44 p.m. ET

TME has been volatile

Shares of Tencent Music Entertainment (TME) have risen 14.5% year-to-date. However, the stock has fallen 16.4% since the start of April 2019. In fact, it’s gained 14.3% in market value this month, which means its shares were down nearly 30.0% in April and May.

Tencent Music stock took a hit after the company announced its first-quarter earnings results in May, reporting revenue of $855 million and adjusted EPS of $0.11. TME beat Wall Street analysts’ consensus revenue estimate of $850 million and their earnings estimate of $0.10, but its stock fell despite the earnings beat as it announced that its CEO would be stepping down.

Article continues below advertisement

Trade war fears affected TME

TME shares also felt the heat as trade war tensions escalated between the US and China, dragging several Chinese stocks down. TME won’t be directly affected by the trade war, but trade tensions could weigh on China’s economy, decreasing overall demand and resulting in an economic slowdown. Such a slowdown would reduce consumer spending and dent TME’s sales.

TME gained 5.0% on June 10

TME rose 5.0% on June 10 as it recovered from its recent slump. We first covered the company on June 7, and its stock has risen 11.2% since then. Though it’s slowing, TME’s revenue growth remains robust. It has a strong balance sheet and is quickly expanding its bottom line.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.