Tencent Music Entertainment: Aggressive MAU Slippage Paired With Even More Aggressive Sell-Off
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Michael Ngan180 FollowersFollow5ShareSavePlay(8min)CommentsSummaryThe latest two consecutive quarters continued to validate the persistence of MAU slippage and invalidate its new growth strategy via SVIPs.The sell-off has been extremely aggressive for the past six months amid broader fears of AI and evidence that TME's competitor, Qishui Music by ByteDance, has been doing well.Given continued efforts in non-subscription revenue per user and a relatively sticky paying user base, sales growth will likely continue to be mildly positive.Tencent Music Entertainment Group has an extremely strong ecosystem of users and content backed by Tencent. The sell-off will eventually stabilize while negative momentum dominates in the short term.Robert Way/iStock Editorial via Getty Images Update Tencent Music Entertainment (TME) had released its earnings for 4Q25 on 17th March. The stock had dropped by ~25% on the same day while sales reached CNY8.6 billion, up 15% YoY. 2025 had witnessed a U-turn forThis article was written byMichael Ngan180 FollowersFollowI specialize in fundamental research in the H and A share markets.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.