8 Best Music Stocks to Buy According to Hedge Funds

5. Tencent Music Entertainment Group (NYSE:TME)

Number of Hedge Fund Holders: 25

Tencent Music Entertainment Group (NYSE:TME) is the leading online music entertainment platform in China. The firm provides online music and music-centric social entertainment services. It has an extensive user base, with the four popular music mobile apps in China including QQ Music, Kugou Music, Kuwo Music, and WeSing for All.

The firm serves as a pioneer of online music entertainment services in China. TME has a massive library of content encompassing recorded music, live music, audio, and video. The firm continues to grow its strategic partnerships with well-known record companies, both domestically and internationally. The content of the platform’s music library is also boosted by online karaoke works, short videos, and live music works uploaded by users through the platform. TME continues to drive paying users’ loyalty through high-quality content and services.

Tencent Music Entertainment Group (NYSE:TME) benefits from its diversified revenue streams. The firm saw a decline in total revenues in Q2 primarily because of a reduction in revenues from social entertainment services and others, partially offset by strong year-over-year growth in revenues from online music services. TME is breaking new ground within China’s streaming landscape with more than 10 million net subscriber additions in 2024’s first half and ARPPU expansion.

With one of the most comprehensive music libraries in China, a portfolio of highly popular and innovative music apps, a focus on user-centric innovation, growth in online music subscribers and retention, and the long-term potential of the music industry, Tencent Music Entertainment Group (NYSE:TME) is a promising music stock to invest in.