If you think Spotify Technology New York: spot The best stock of music broadcast was in 2025, thought again. Spotify’s performance was impressive, as shares rose by 54 % on an annual basis.
TENCENT musical entertainment collection today
TENCent musical entertainment collection
- 52 weeks
- 9.41 dollars
▼
$ 26.54
- Profit
- 0.69 %
- P/E ratio.
- 26.96
- The target price
- 24.47 dollars
However, this return diminishes compared to the Tencen Music Entertainment Group Nyse: tmeA company that can call Spotify China.
In 2025, TME a Total return about 122 %.
The company speeds up the growth of its revenues, improves its profit significantly, and acquires tens of billions in the market value.
Below, we will avoid this name, which finds great success in the second largest economy in the world. In the end, is the TENCent Music Entertainment Group a collection that investors should take into account?
TME dominates music in China, and I noticed Spotify
TME is the largest music broadcast service in China, with more than 550 million active users and about 125 million users paying. The closest company competitor is Netease Nasdak: hunting Netease Cloud Music (NECM), with Almost 200 million users. This indicates that TME has a great hegemony in the Chinese music broadcast market.
It is worth noting that Spotify is not officially available in China, where it is said to be the platform Prohibited. The TME scale compared to the absence of NECM and Spotify its strong fist in the Chinese music broadcast market.
It is worth noting that Spotify has recognized TME ingenuity and decided to invest in the company instead of actively competing for it. On page 11 of the latest annual deposit of SpotifyShe said that most of her long -term investments are related to TME.
Spotify’s disclosure indicates that its investment in TME was likely About $ 1.6 billion at the end of 2024. This is a convincing reason for investors to consider TME. Spotify knows better music flow than anyone else, and has made it a point for investing billions of dollars in the company.
TME Q2 profits show strong growth and profitability rights
In Q2, TME has published the seventh successor in a row from the acceleration of revenue growth, with sales 18 % increase. This comes after revenue is almost 2 % a year ago. The company also provided widespread profitable improvements. A total margin increased by 44.4 % by 240 basis points last year, by more than 1000 basis points for two years.
In addition, the operating margin has grown by 460 basis points to 35.3 %. This number increased dramatically from 21.1 % two years ago. The paid company users increased by 6.3 %, and the average company’s revenues for each user paid 9.3 % increased. In general, the shares gained 12 % after the August 12 report, indicating that TME had a very strong quarter.
The latest goals of the price. See TME ascending, the evaluation is much lower than the spot
Marketbeat consensus price on TME is about $ 24.50. This number means 2 % negative aspect compared to the closing price on August 28. However, it is worth thinking about what the goals of the latest analysts say about this stock. Since the latest profit report at TME, Marketbeat has been tracked Many analysts who updated their price goals On stocks.
Among them, the average goal comes at about 28.25 dollars. This number turns the text program, indicating that the shares may rise by another 13.5 %.
Investors should also notice that TME is trading in the price (P/E) is about 27X. This looks cheap compared to Spotify. Immediate trades are made in P/E forward for more than 59X, which is approximately 120 % in addition to TME.
However, Spotify has multiple factors for its part that helps to justify its distinctive evaluation. This includes more 150 million users conducted From TME and generate more than three times the revenue from each payment user.
In addition, Spotify works generate revenues around the world, while TME only works mainly in China.
TME: a growth room in a huge market
Despite its lack of geographical diversification, it is still at TME A large runway for growth inside China. With more than 1.4 billion people, the user base that drives the company extends to about 9 % of the country.
According to the January 2025 report, Spotify was 55 million distinguished users in the United States. This equals about 16 % of the US population of 340 million. This indicates that TME still has a long way before reaching similar levels of penetration.
For this reason and others shown above, investors must consider TME. It is difficult to ignore its hegemony in China and financial improvements. Spotify’s Investment is also a strong sign, the latest Wall Street price.
Before you think about the TENCENT MUSIC Entertainment Group collection, you will want to hear it.
Marketbeat follows the best research analyst at Wall Street, the best performance in Wall Street and the stocks they recommend to their customers on a daily basis. Marketbeat has selected the five shares that the top analysts quietly whispered to their customers to buy now before wiping the broader market … It was not Tencen Music Entertainment Group in the list.
While the Tencent Music Entertainment Group currently has a purchase classification between analysts, analysts from the top rankings believe that these five shares buy better.
Show the five stocks here
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