Tencent Music (TME) stock fell 7.2% this week, despite Q2 earnings beating Wall Street expectations.
Investors are concerned about the significant increase in Tencent Music's operating expenses and the approximately 16% year-over-year decline in social entertainment services revenue. In addition, the recent widespread selling pressure on Chinese technology stocks has also impacted the company's share price. Tencent Music's Q2 sales were $1.32 billion, an increase of approximately 5.8% year-over-year, with adjusted earnings per ADS exceeding analysts' expectations by $0.01 and sales exceeding expectations by approximately $20 million.
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