Yahoo Finance Why Tencent Music Tanked Over 4% Today
Why Tencent Music Tanked Over 4% Today ## Tencent Music Chinese music streaming services provider Tencent Music Entertainment Group’s (TME) performance has remained mixed since its IPO in December. Through its IPO, the company managed to raise about $1.1 billion, translating to a value of $21.3 billion. Tencent Music’s ADRs (American depositary receipts) started trading on NYSE at $13.00, and as of January 4, it had gone up 1.5%. ## Recent weakness Today at 2:50 ET, Tencent Music ADR posted a day low of $12.64, down about 4.2% from its previous session’s closing price. There was no significant news from Tencent music. However, last week, its home-market competitor NetEase Cloud Music, owned by NetEase Inc. (NTES), announced a partnership with South Korean entertainment company CUBE Entertainment. Under this partnership, “NetEase Cloud Music has been granted access to CUBE Entertainment’s complete music catalog, including sought-after albums and tracks from popular performers such as BTOB, CLC, PENTAGON, Yoo Seon-Ho and (G)I-DLE,” it said in a press release. Investors’ concerns about increasing competition for Tencent Music due to NetEase Cloud Music’s expanding music library in China could be taking a toll on TME. Note that Tencent Music was formed after its parent company, Tencent Holdings (TCEHY), acquired China Music Corporation in 2016 while NetEase Cloud Music launched in 2013. In the fourth quarter of 2018, Tencent Holdings fell 3.4% while other Chinese companies (FXI)(MCHI) Alibaba (BABA), NIO (NIO), Baidu (BIDU), and IQIYI (IQ) lost 16.8%, 8.7%, 30.6%, and 45.1%, respectively. In comparison, US tech companies Apple (AAPL), Amazon (AMZN), and Netflix (NFLX) fell 30.1%, 25.0%, and 28.5%, respectively, last quarter.
