Why Tencent Music Entertainment Was Surging Today
Shares of Chinese music streaming service Tencent Music Entertainment (NYSE: TME) were rising on Tuesday, up 9.7% on the day as of the end of trading.
Tencent Music reported earnings last night, and you would think by the market's reaction that the company beat expectations. But it didn't -- rather, today's move seemed to reflect a broader pro-China stock rally, as many of Tencent Music's internet peers also soared today.
In the fourth quarter, Tencent Music posted a revenue decline of 8.7% to $1.2 billion, missing expectations, while adjusted (non-GAAP) earnings per share of $0.08 came in line with expectations. It appears a combination of economic reopening and China's crackdown on monopolistic companies, which affected Tencent Music's exclusivity contracts with publishers, may have had an impact on results.
Source Fool.com
