Why Tencent Music Entertainment Group (TME) Soared On Tuesday?

We recently published a list of 10 Stocks That Led Tuesday’s Charge. In this article, we are going to take a look at where Tencent Music Entertainment Group (NYSE:TME) stands against other stocks that led Tuesday’s charge.

The stock market finished Tuesday’s trading in the red territory anew, erasing two consecutive days of gains, as investors repositioned their portfolios ahead of the Fed rate decision on Wednesday.

The Nasdaq registered the biggest drop among Wall Street’s main indices, declining 1.71 percent, followed by the S&P 500 with 1.07 percent, and the Dow Jones by 0.62 percent.

Despite the decline, ten companies showed off resilience during the session, finishing with modest gains. In this article, we have named the 10 top performers and detailed the reasons behind their gains.

To come up with the list, we only considered the stocks with a $2-billion market capitalization and $5 million in trading volume.

A singing performer silhouetted on a spotlighted online stage.

Tencent Music Entertainment Group (NYSE:TME)

Tencent rallied for a fifth consecutive day on Tuesday, adding 15.54 percent to close at $15.09 apiece as investors snapped up shares following a stellar earnings performance coupled with news that it integrated DeepSeek into its operations.

In its latest earnings release, TME said net income for the last quarter of 2024 increased by 47 percent to RMB2.076 billion from RMB1.409 billion in the same period a year earlier, while revenues increased by 8.2 percent to RMB7.458 billion from RMB6.893 billion year-on-year.

Net profit for the full year 2024 grew by 36 percent to RMB7.109 billion from RMB5.22 billion, while revenues inched up by 2.3 percent to RMB28.401 billion from RMB27.752 billion.

Meanwhile, TME said it integrated DeepSeek into song creation which invigorated passion for music creation among its users and garnered an increasingly personalized music experience through its integration with AI assistants, comment sections, and recommendation pages.

Overall, TME ranks 1st on our list of stocks that led Tuesday’s charge. While we acknowledge the potential of TME as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as TME but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.