Tencent News: Why Is TME Stock Plunging 15% Today?

Tencent Music Entertainment (NYSE:TME) stock is falling on Tuesday after the online music entertainment platform company reported earnings for the second quarter of 2024.

The bad news for investors in TME stock starts with its adjusted earnings per share of 65 cents. That’s a miss next to Wall Street’s estimate of 1.18 yuan. Adding to this trouble is revenue of 7.16 billion yuan. That only just came in above analysts’ revenue estimate of 7.14 billion yuan.

Tencent Music Entertainment also notes that its Q2 2024 revenue dropped 1.7% year-over-year. The company says this was mainly due to a drop in revenue from its social entertainment services.

Cussion Pang, executive chairman of Tencent Music Entertainment, said the following about the earnings.

“We remain optimistic about the music industry’s long-term potential and are committed to sustainably achieving our mid- to long-term goals, at a healthy pace and with the right balance. This approach has been instrumental in the past as we effectively navigated across various development stages and changing external environments, and it will continue to fuel innovation and growth for the years to come.”

How This Affects TME Stock Today

Investors aren’t impressed by the company’s latest earnings report. That resulted in heavy trading as they sell shares, with more than 25 million units on the move as of this writing. For the record, Tencent Music Entertainment’s daily average trading volume is about 7.5 million shares.

TME stock is down 15.2% as of Tuesday afternoon. However, the shares are still up 27.6% since the start of the year.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.