Yahoo Finance Tencent Music Entertainment Group (TME) Reported Solid Revenue and Earnings Growth in Q1
Polen Capital, an investment management company, released its “Polen Emerging Markets Growth Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 1.48% gross and 1.25% net of fees in the quarter compared to 2.37% for the MSCI Emerging Markets Index. Emerging market securities rose in the quarter, carrying over the upward trend from the fourth quarter of 2023. Despite the strong returns of the asset class over the previous six months, emerging equities continued to underperform developed markets. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Polen Emerging Markets Growth Strategy highlighted stocks like Tencent Music Entertainment Group (NYSE:TME), in the first quarter 2024 investor letter. Tencent Music Entertainment Group (NYSE:TME) operates online music entertainment platforms. Tencent Music Entertainment Group's (NYSE:TME) one-month return was 5.66%, and its shares gained 83.73% of their value over the last 52 weeks. On June 4, 2024, Tencent Music Entertainment Group (NYSE:TME) stock closed at $14.00 per share with a market capitalization of $24.863 billion.
Polen Emerging Markets Growth Strategy stated the following regarding Tencent Music Entertainment Group (NYSE:TME) in its first quarter 2024 investor letter:
"Tencent Music Entertainment Group (NYSE:TME), China's equivalent to Spotify, posted better-than-expected results over consecutive quarters. Its music business has continued to perform well in a robust pricing environment, leading to solid revenue and earnings growth.The company now has over 106 million paying music subscribers, a 20% year-over-year increase, a revenue mix shift, and a higher average revenue per paying user, which has led to the company's highest gross margin in five years."
Dolby, Music
Tencent Music Entertainment Group (NYSE:TME) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Tencent Music Entertainment Group (NYSE:TME) at the end of the first quarter which was 23 in the previous quarter. Tencent Music Entertainment Group's (NYSE:TME) gross margin for the quarter was 40.9%, up 2.6% from the previous quarter and 7.8% from the previous year quarter. While we acknowledge the potential of Tencent Music Entertainment Group (NYSE:TME) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Tencent Music Entertainment Group (NYSE:TME) and shared Baron Emerging Markets Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
