Tencent Music Entertainment Group Sponsored ADR (TME) has been on a downward spiral lately with significant selling pressure. After declining 17.5% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock i ...

Core Insights - Spotify has acquired WhoSampled, a community-run database that tracks sampled music, enhancing its music discovery features [1][2] - The acquisition includes both the WhoSampled team and its database, which contains over 1.2 million songs and nearly 622,000 samples [1] - WhoSampled will maintain its standalone platform and brand post-acquisition, with plans for user-facing improvements [3][4] Company Overview - WhoSampled, launched in 2008 and based in London, provides an extensive database of songs, samples, covers, and remixes [1] - The company had a small team of around 10 employees prior to the acquisition [1] Strategic Implications - The acquisition aligns with Spotify's vision of enhancing musical context and improving user engagement with music [4] - WhoSampled's data will support Spotify's new features, including the upcoming music discovery tool SongDNA [1]

Core Insights - The emergence of Qishui Music as a significant player in the music streaming industry is reshaping the competitive landscape, prompting established giants like Tencent Music and NetEase Cloud Music to reassess their market positions [1][2][9] User Growth and Market Dynamics - Qishui Music has rapidly grown to 120 million active users by September 2025, positioning itself as the fourth largest player in the industry, following Tencent Music, QQ Music, and NetEase Cloud Music [1][4] - Tencent Music's stock fell by 11% following its Q3 2025 earnings report, despite reporting a total revenue of 8.46 billion yuan, a year-on-year increase of 20.6% [1][8] - The user overlap between Qishui Music and traditional platforms like QQ Music and NetEase Cloud Music is only 2%-3%, indicating that Qishui Music is attracting new users rather than merely redistributing existing ones [9][10] Business Model and Revenue Streams - Qishui Music employs a "free + subscription" model, significantly lowering the barriers to entry for users, which contrasts with the traditional subscription-based revenue model of Tencent Music and NetEase Cloud Music [11][13] - Tencent Music's subscription revenue accounted for 53.2% of its total revenue in Q3 2025, while Qishui Music's approach focuses on user engagement through low-cost membership options and promotional offers [11][13] Competitive Strategies - Qishui Music leverages its integration with Douyin (TikTok) to enhance user engagement and retention, with 38% of its users also active on Douyin [4][6] - The platform's algorithm-driven recommendations and short video experiences have proven effective in attracting users, leading to a 90.7% year-on-year increase in active users as of September [6][8] Industry Implications - The loosening of exclusive music copyright agreements has allowed Qishui Music to enter the market more effectively, capitalizing on the shift towards shared rights among platforms [2][3] - The competitive pressure from Qishui Music is forcing Tencent Music and NetEase Cloud Music to innovate and adapt their business models to retain users and market share [17]

Emily Flippen: Earning season continues, but we're diving into more than just the headline numbers. Today on Motley Fool Money, we dive into the narrative driving results for Spotify, Shopify, and Uber. It's Tuesday, November 4. Welcome to Motley Fool Money. I'm your host, Emily Flippen. And today, I'm joined by full analysts Jason Hall and Jeff Santoro to discuss three reformed rulebreakers and what their recent earnings say about how these companies have turned themselves around. Jason, I know Shopify is ...

Core Insights - Spotify has outperformed the S&P 500 in 2025 with a 40% return compared to the index's 16% increase, but caution is advised for 2026 [1][2] Company Overview - Spotify is the largest music streaming platform globally, holding a 31.7% market share, significantly ahead of Tencent Music at 14.4% [3] - The company competes by enhancing user experience through advanced technology and diverse content formats, including podcasts and audiobooks [3] Technological Advancements - Artificial intelligence is central to Spotify's strategy, improving its recommendation engine and enabling features like AI Playlist [4] - An integration with OpenAI's ChatGPT allows users to interact with the platform for music recommendations [5] Content Strategy - Spotify is focusing on expanding its video podcast library, which has seen user engagement more than double year-over-year in Q3 2025 [6] - The platform has 281 million Premium subscribers and 446 million ad-supported users, with Premium subscribers contributing approximately 90% of total revenue [7] Financial Performance - In Q3 2025, Spotify generated $4.9 billion in revenue, a 7% increase year-over-year, with a projected total revenue of $19.9 billion for the year, reflecting a 9.5% growth from 2024 [8] - The company is expected to see accelerated growth of 14.5% in 2026, with a significant increase in net income by 200% to $1.04 billion [9] Valuation Concerns - Spotify's current price-to-sales (P/S) ratio is 7.1, which is 69% higher than its average since going public [11] - The price-to-earnings (P/E) ratio stands at 99.2, significantly above the S&P 500's 25.7, indicating a higher valuation compared to the broader market [13] - Even with projected earnings for 2026, Spotify's forward P/E ratio of 45.3 suggests limited upside potential for short-term investors [14] Long-term Outlook - Despite current valuation concerns, long-term prospects remain positive, with forecasts suggesting revenue could reach $100 billion by 2032, indicating substantial growth potential [16]

Core Viewpoint - The company reported a slight beat in Q3 2025 earnings, driven by strong performance in non-subscription music business [1][2] Performance Review - Q3 2025 revenue reached 8.46 billion yuan, a year-on-year increase of 20.6% - Non-IFRS net profit attributable to the parent company was 2.41 billion yuan, up 32.6%, slightly above the expected 2.30 billion yuan, mainly due to better-than-expected performance in non-subscription music [1] Development Trends - Subscription business shows profitability resilience, while non-subscription business has significant growth potential - Subscription Revenue: Q3 2025 revenue increased by 17.2% to 4.49 billion yuan, with paid users increasing by 1.3 million to 126 million, and ARPPU rising by 10.2% to 11.9 yuan/month. Expected growth in Q4 2025 includes an additional 1.3 million paid users and ARPPU rising to 12.1 yuan/month [1] - Non-Subscription Revenue: Q3 2025 revenue surged by 50.3% to 2.48 billion yuan, with concert and artist economy revenues growing rapidly. The company anticipates a 35.7% year-on-year revenue growth for the full year [1] Profitability and Valuation - Q3 2025 gross margin decreased by 0.9 percentage points to 43.5%, with stable sales expenses and a 5.3% year-on-year increase in management expenses. The company indicated that investments in offline performances and IP economy are crucial for long-term growth [2] - The company maintains a "one body, two wings" strategy to explore the full value of the industry chain, enhancing collaboration with global record companies and innovating product functions and services [2] - Adjustments to profit forecasts for 2025 and 2026 reflect new business growth and potential investments, with Non-IFRS net profit estimates revised to 9.63 billion yuan and 10.75 billion yuan respectively. Current P/E ratios for US and Hong Kong stocks are 24/21 times and 25/22 times for 2025/2026 [2]

We recently published 10 Stocks Suffer Heavy Selling Pressure. Tencent Music Entertainment Group (NYSE:TME) is one of the worst-performing stocks on Wednesday. Tencent Music fell by 8.39 percent on Wednesday to close at $19.01 apiece as investors took path from an investment firm’s lower price target for its stock. In a market note, Macquarie reduced its price target for Tencent Music Entertainment Group (NYSE:TME) to $28.30 from $29.80 previously, but maintained its “outperform” rating on the stock. Sti ...

Core Viewpoint - Tencent Music Entertainment Group (TME) has maintained a Buy rating due to its third quarter results exceeding consensus expectations, and the stock's valuation has become more attractive following an unjustified price decline [1]. Group 1: Company Overview - Tencent Music Entertainment Group is a key player in the Asian equity market, particularly focusing on value investments in Hong Kong-listed stocks [2]. Group 2: Investment Strategy - The investment strategy emphasizes identifying deep value balance sheet bargains and wide moat stocks, targeting companies with significant discrepancies between market price and intrinsic value [1][2].

Spotify introduces a Premium Platinum plan with lossless access in five markets https://t.co/5ZTAtzsxc6 ...

Core Insights - Spotify is introducing new premium tiers: Premium Lite, Premium Standard, and Premium Platinum in five markets: India, Indonesia, the UAE, Saudi Arabia, and South Africa [1][5] Pricing and Features - The Premium Lite plan is priced at ₹139 per month ($1.57) and includes ad-free listening and 160kbps audio quality [3] - The Premium Standard plan costs ₹199 per month ($2.25) and offers offline support and 320kbps audio quality [3] - The Premium Platinum plan, priced at ₹299 per month ($3.37), includes access to the Lossless tier, allows account sharing for up to three users, and features Spotify's AI DJ and playlist creation tools [3][4][9] Market Context - The new premium tiers are being launched in markets that have not previously had access to these features, which have been available in North America and Europe [5] - Existing subscribers will retain their current subscriptions, while new subscribers must choose from the new plans, as the old Duo and Family plans are no longer available [6] Price Adjustments - For new subscribers in India, Spotify is increasing subscription prices while reducing some benefits from the previous Premium plan [7] - The Standard individual plan now costs ₹139 ($1.57), matching the new Lite plan, while the Family plan is priced at ₹229 ($2.58) for six members [7][9] Global Pricing Trends - Spotify has made pricing changes in other markets, including a price increase in the U.S. from $9.99 to $11.99 per month over the last two years [9]