Tencent Music Stock Hits an 11/10 Surge – Here’s Why Investors Are Turning Up the Volume
Tencent Music Entertainment (TME) blasted past expectations on Tuesday, August 12, 2025, with shares rocketing to an eye-popping gain. Was it a masterstroke of strategy—or just another case of market FOMO?
The Catalyst: Hits Keep Coming
No official numbers dropped, but whispers of licensing wins and subscription bumps sent traders scrambling. The algo-traders piled in first, of course—because nothing screams ‘organic growth’ like bots chasing momentum.
Bull vs. Bear Tug-of-War
Bulls argue TME’s monetization mojo is back. Bears yawn, muttering about ‘overbought’ RSI levels. Meanwhile, retail investors got whiplash trying to time the peak.
Cynic’s Corner
Let’s be real: in a market where ‘audio streaming’ counts as ‘tech,’ even a kazoo solo could trigger a 10% rally these days. But hey—enjoy the ride while it lasts.
Music to the market's ears
In its second quarter, Tencent Music collected 8.44 billion yuan ($1.2 billion) in revenue, a strong (18%) year-over-year improvement for the company. The main driver of this growth was the take from online music services; this ROSE by 26% to 6.85 billion yuan ($953 million) for the period. Average revenue per user (ARPU) also headed north, rising to 11.7 yuan ($1.63) from 10.7 yuan ($1.49).
Image source: Getty Images.
Tencent Music's net income also saw a notable increase in volume. It climbed nearly 38% higher to just under 2.5 billion yuan ($348 million), for a per-ADS figure of 1.55 yuan ($0.22).
Both headline numbers beat the average analyst estimates. Pundits tracking the company's stock were anticipating it WOULD earn 7.97 billion yuan ($1.1 billion) for revenue and a per-ADS net profit of 1.42 yuan ($0.20).
A one-stop shop for tunes, and fortunes
In its earnings release, Tencent Music quoted executive chairman Cuisson Pang: "As we continue to scale our platform, we are focused on building a vibrant, one-stop music service destination that empowers content creators and reshapes connections with music lovers in meaningful ways."
The company did not offer any guidance in its earnings release.
