Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial - Chart
- Upturn Summary
- Highlights
- Revenue
- Valuation
- About
TME 
Tencent Music Entertainment Group (TME)
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)
Stock price based on last close (see disclosures)
- ALL
- 1Y
- 1M
- 1W
Upturn Advisory Summary
12/09/2025: TME (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
32 Analysts rated it
Highly popular stock, broad analyst coverage, trusted insights, strong investor interest.
1 Year Target Price $27.06
1 Year Target Price $27.06
| 20 | Strong Buy |
| 10 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 74.12% | Avg. Invested days 53 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 12/09/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 30.96B USD | Price to earnings Ratio 18.76 | 1Y Target Price 27.06 |
Price to earnings Ratio 18.76 | 1Y Target Price 27.06 | ||
Volume (30-day avg) 32 | Beta 0.46 | 52 Weeks Range 10.26 - 26.70 | Updated Date 12/9/2025 |
52 Weeks Range 10.26 - 26.70 | Updated Date 12/9/2025 | ||
Dividends yield (FY) 0.97% | Basic EPS (TTM) 0.98 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-11-12 | When - | Estimate 1.52 | Actual 1.54 |
Profitability
Profit Margin 34.08% | Operating Margin (TTM) 29.13% |
Management Effectiveness
Return on Assets (TTM) 7.84% | Return on Equity (TTM) 14.79% |
Valuation
Trailing PE 18.76 | Forward PE 18.55 | Enterprise Value 26250146039 | Price to Sales(TTM) 0.98 |
Enterprise Value 26250146039 | Price to Sales(TTM) 0.98 | ||
Enterprise Value to Revenue 5.85 | Enterprise Value to EBITDA 14.23 | Shares Outstanding 708442998 | Shares Floating 1111468777 |
Shares Outstanding 708442998 | Shares Floating 1111468777 | ||
Percent Insiders - | Percent Institutions 62.73 |
Upturn AI SWOT
Tencent Music Entertainment Group
Company Overview
History and Background
Tencent Music Entertainment Group (TME) was established in 2016 through the merger of Tencent's QQ Music and Kugou Music. It officially launched as a standalone entity in 2017. TME is a subsidiary of Tencent Holdings. Key milestones include its NASDAQ IPO in 2018, further solidifying its position as a dominant player in China's music streaming market.
Core Business Areas
- Online Music Services: This segment encompasses TME's music streaming platforms, offering a vast library of songs and an ad-supported free tier alongside a premium subscription service. It includes services like QQ Music, Kugou Music, and Kuwo Music.
- Social Entertainment Services: This segment focuses on interactive live entertainment experiences, primarily through music-focused live streaming. Users can participate by sending virtual gifts to performers and streamers. This includes platforms like WeSing and related live streaming services.
Leadership and Structure
Tencent Music Entertainment Group is led by a management team with extensive experience in the music and technology industries. The specific details of the leadership team and organizational structure can be found in their official SEC filings and investor relations materials.
Top Products and Market Share
Key Offerings
- QQ Music: China's leading online music platform by number of monthly active users (MAU) and paying users. It offers music streaming, social features, and original content. Competitors include NetEase Cloud Music and other smaller streaming services. As of Q4 2023, QQ Music had approximately 170.5 million MAU. Revenue contribution varies but is a significant portion of the Online Music Services segment.
- Kugou Music: Another major music streaming platform in China, known for its extensive music library and strong user base. It shares many features with QQ Music and faces similar competitive pressures. Competitors include NetEase Cloud Music. As of Q4 2023, Kugou Music had a substantial number of MAU, contributing significantly to the Online Music Services segment revenue.
- Kuwo Music: A third significant music streaming platform under TME, also offering a broad range of music content and user services. Competitors include NetEase Cloud Music. As of Q4 2023, Kuwo Music also contributed to the overall MAU figures of the Online Music Services segment.
- WeSing: A leading social karaoke and live streaming platform in China. It allows users to record and share karaoke performances and engage in live streaming. Competitors include smaller karaoke apps and general live streaming platforms. WeSing is a key driver of the Social Entertainment Services segment revenue.
Market Dynamics
Industry Overview
The Chinese music streaming industry is characterized by a large and growing user base, increasing penetration of paid subscriptions, and a strong demand for social entertainment features. It is a highly competitive market with significant investment in content licensing, user acquisition, and technological innovation.
Positioning
TME holds a dominant position in the Chinese music market due to its vast user base, extensive music library, and diversified revenue streams from both online music and social entertainment. Its integration with Tencent's broader ecosystem provides a significant competitive advantage. TME's strength lies in its ability to leverage user engagement and monetize through subscriptions, virtual gifts, and advertising.
Total Addressable Market (TAM)
The TAM for China's online music and social entertainment market is substantial and continues to grow. While specific TAM figures fluctuate, it is estimated to be in the tens of billions of US dollars. TME, as a market leader, is well-positioned to capture a significant share of this growing market due to its established brand, user loyalty, and strategic partnerships.
Upturn SWOT Analysis
Strengths
- Dominant market share in China's online music and social entertainment sectors.
- Strong brand recognition and user loyalty across its platforms.
- Synergies with Tencent's vast ecosystem (e.g., WeChat, QQ).
- Diversified revenue streams (subscriptions, virtual gifts, advertising).
- Extensive music library and exclusive content deals.
- Leading position in social entertainment services, driving high engagement.
Weaknesses
- Reliance on a single geographic market (China).
- High content licensing costs can impact profitability.
- Intense competition from players like NetEase Cloud Music.
- Regulatory risks associated with the Chinese internet industry.
- Challenges in converting free users to paying subscribers.
Opportunities
- Further growth in paid subscriptions.
- Expansion of e-commerce and other value-added services.
- Leveraging AI for personalized recommendations and content creation.
- Potential for international expansion, though challenging.
- Growing demand for short-form video content integration.
- Exploring new revenue models beyond music streaming and live streaming.
Threats
- Increased competition and potential price wars.
- Changes in music licensing regulations or costs.
- Economic slowdown impacting consumer spending.
- Evolving user preferences and content trends.
- Potential for new disruptive technologies or platforms.
- Geopolitical tensions affecting international business operations.
Competitors and Market Share
Key Competitors
- NetEase Cloud Music (NTES)
Competitive Landscape
TME's primary competitive advantage lies in its massive user base and its integration with Tencent's social ecosystem, providing unparalleled reach. NetEase Cloud Music is a strong competitor, particularly appealing to younger demographics with its focus on indie music and community features. TME's strengths lie in its broader market penetration and diversified offerings, while NetEase excels in niche engagement. TME's challenge is to continuously innovate and retain its vast user base against a determined competitor.
Growth Trajectory and Initiatives
Historical Growth: TME has experienced significant historical growth since its inception, driven by the rapid expansion of the digital music market in China and its successful integration of social entertainment features. User acquisition and engagement have been key drivers of this growth.
Future Projections: Analyst projections for TME's future growth are generally positive, anticipating continued expansion in paid subscriptions, and stable or growing social entertainment revenue. Focus on content quality, user experience, and operational efficiency are expected to drive future performance. Specific EPS and revenue growth projections are available from financial analysts.
Recent Initiatives: Focus on expanding premium subscriptions and increasing ARPPU.,Development of new music-related products and services.,Enhancement of social entertainment features to boost user engagement.,Strategic partnerships for content acquisition and distribution.,Exploration of AI-driven music creation and recommendation tools.
Summary
Tencent Music Entertainment Group is a dominant force in China's digital music and social entertainment market. Its vast user base, strong brand, and integration with Tencent's ecosystem are significant strengths. The company benefits from growing demand for paid music subscriptions and engaging social features. However, it faces intense competition, high content costs, and regulatory risks in the Chinese market. Continued innovation and strategic expansion are crucial for maintaining its leadership and driving future growth.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Tencent Music Entertainment Group's official investor relations website and SEC filings (Form 20-F, 6-K).
- Financial news outlets and market data providers (e.g., Reuters, Bloomberg, Yahoo Finance).
- Industry analysis reports on the Chinese digital music market.
Disclaimers:
This information is for informational purposes only and does not constitute financial advice. Market share data and financial metrics are estimates and subject to change. Specific investment decisions should be made after consulting with a qualified financial advisor and conducting independent research.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Tencent Music Entertainment Group
Exchange NYSE | Headquaters - | ||
IPO Launch date 2018-12-12 | CEO & Director Mr. Zhu Liang | ||
Sector Communication Services | Industry Internet Content & Information | Full time employees 5353 | Website https://www.tencentmusic.com |
Full time employees 5353 | Website https://www.tencentmusic.com | ||
Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy, and share music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with audience base; and Lazy Audio, an audio platform. In addition, it sells artist-related merchandise, such as branded apparel, posters and art prints, and accessories; other music services, such as content licensing, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts, and artist management services; and music subscriptions, as well as offers advertising services across its social entertainment platforms. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.