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Tencent Music Entertainment Group ($TME) ADR shares were up over 1% on Monday (11:36 am ET) ahead of the company’s earnings announcement.
Wall Street expects the Shenzhen-based online music entertainment provider to post $0.16 in earnings per share (EPS), on revenues of $984.03 million. The company missed estimates in the last four quarters.
Tencent provides music streaming, online karaoke, and live streaming services, and is behind such brands as “QQ Music,” “Kuwo Music,” and “WeSing.”
Retail sentiment on the stock turned ‘bullish’ (73/100) from ‘neutral’ (47/100) a day ago, while message volumes climbed into the extremely high zone from high.
Last month, Tencent announced a strategic partnership with Galaxy Corp, the agency representing the influential global musician G-Dragon, for an upcoming regional tour. The agreement marks a “significant step forward” as it aims to expand its global presence and solidify its international position, the company said in a statement.
Earlier this month, Barclays analyst Jiong Shao started to cover Tencent, keeping an ‘Overweight’ rating and a $16 price target, The Fly reported.
“The combination of a market with little competition, management's track record of adaption and execution, and a new growth path ahead make Tencent Music one of the best positioned Chinese internet companies,” the report said citing the analyst. The analyst added Tencent has dominant market share, a focused strategy, and a proven execution record, which make it a "compelling asset to own."
TME has been making efforts to broaden its international footprint through a range of initiatives like its Global Music Outreach program, which seeks to showcase Chinese music artists on international platforms and facilitate cross-border collaborations, it said in a press release. It also operates the JOOX streaming service in Southeast Asia.
Stocktwits users were upbeat on the stock.
Tencent Music stock is up 32.2% year-to-date.
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