Tencent Music Entertainment Group (TME), trading on the NYSE, is a major player in the music industry with a market capitalization of approximately 1.48 bln USD as of 3 Feb 2023. The company’s stock has been performing well over the past year, having increased from 2.95 USD to 8.45 USD since early 2020, representing an impressive 186% gain during this time period. The stock has seen several highs and lows in between these dates, with volatility being especially apparent recently as the share price saw wild fluctuations around 8.18-8.46 USD during February 2021. Furthermore, TME’s 50-day Moving Average is at 8.32 USD while its 200-day Moving Average is at 5.44 USD, both representing considerable gains from 2020’s low point of 2.95USD on 22 May 2020
Tencent Music Entertainment Group has achieved impressive financial performance due to various factors including its position in China’s music streaming industry; it holds an estimated 83% market share for subscription services and 71% for advertising services according to Goldman Sachs estimates from October 2019. Additionally, its partnership with Spotify has seen the company reap rewards from global expansion opportunities as it seeks to capitalize on China’s growing middle class population and their increasing demand for premium digital content services like those offered by TME’s streaming platforms such as QQ Music and Kugou Music among others.
Overall, Tencent Music Entertainment Group’s strong financial performance over the past year is indicative of a healthy balance sheet and robust future prospects in the Chinese music streaming industry given its dominant market position and strategic partnerships with leading international players like Spotify. As such, investors looking to gain exposure to an industry leader may consider investing in this sector through Tencent Music Entertainment Group’s stock as it could prove to be a sound long term investment decision given current trends within this dynamic sector of the economy.
