Why Is Tencent Music Stock Trading Higher on Monday?
Portfolio Pulse from Anusuya Lahiri
Tencent Music Entertainment Group (NYSE:TME) reported a fiscal Q1 2024 revenue decline of 3.4% Y/Y to $937.0 million, surpassing analyst estimates. Despite a drop in social entertainment revenues, strong growth in online music services and a significant increase in music subscription revenues contributed to the positive outcome. The company also announced an annual cash dividend policy, with a dividend of $0.1370 per ADS for FY 2023. TME shares rose 1.65% in premarket trading, and the stock has gained over 68% in the last 12 months. Exposure to TME can also be gained through KraneShares Trust KraneShares CSI China Internet ETF (NYSE:KWEB) and Invesco Golden Dragon China ETF (NASDAQ:PGJ).
May 13, 2024 | 1:09 pm
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POSITIVE IMPACT
KWEB ETF offers exposure to TME, which reported strong Q1 2024 results and announced a dividend policy, potentially increasing KWEB's attractiveness.
As TME is part of KWEB's portfolio, TME's positive earnings and dividend announcement may attract more investors to KWEB, potentially boosting its price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
PGJ ETF, which includes TME, could benefit from TME's positive Q1 2024 earnings report and dividend announcement, possibly enhancing PGJ's appeal.
TME's performance and dividend policy may positively influence PGJ's price, as TME's success can attract more investors to PGJ, given its exposure to TME.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Tencent Music reported a slight revenue decline but surpassed analyst estimates, announced a new dividend policy, and saw a premarket stock price increase.
The positive earnings report and the announcement of a dividend policy are likely to boost investor confidence in TME, contributing to a short-term positive impact on its stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100