Tencent Music Entertainment Group (NYSE:TME) is a leading online music and audio entertainment platform in China, known for its comprehensive music services ranging from music streaming to artist merchandise. TME stands out in the competitive music streaming industry by leveraging its strong market position to foster growth and innovation.
On March 17, 2026, Macquarie updated its rating for TME to Neutral, suggesting investors hold the stock. This recommendation came after TME's stock price was recorded at $11.37. The rating adjustment follows TME's Q4 2025 earnings call, showcasing the company's financial performance and strategic directions.
TME reported a 15.9% year-on-year increase in total revenue for Q4 2025, reaching RMB8.64 billion (approximately $1.24 billion). This growth was primarily fueled by a 21.7% rise in online music services, contributing RMB7.10 billion (around $1.02 billion). Additionally, music subscriptions saw a 13.2% growth, totaling RMB4.56 billion (about $653 million).
Despite the strong earnings report, TME's stock price experienced a drop of over 20% due to changes in the disclosure of user metrics. The company's non-IFRS diluted earnings per ADS increased to RMB1.60 ($0.23), while IFRS diluted earnings per ADS rose to RMB1.41 ($0.20). CEO Ross Liang highlighted the importance of AI-driven initiatives and user-centric strategies for the company's ongoing success.
Currently, TME's stock is priced at $11.37, reflecting a 24.65% decrease, with a market cap of $17.43 billion. The stock has seen fluctuations between $11.33 and $13 during the trading day, with a volume of 63.85 million shares. Over the past year, TME's stock reached a high of $26.70 and a low of $11.33.
