Stock Market Today, March 17: Tencent Music Plunges on Earnings Miss and User Concerns
Tencent Music Entertainment Group (NYSE:TME), a China-focused online music and karaoke platform, closed Tuesday at $11.37, down 24.65%. The stock fell after fiscal Q4 2025 results showed a revenue beat and subscriber growth, but an EPS miss, shrinking free users, and fresh analyst downgrades. Investors are watching how the new user-metric disclosures affect confidence in future growth. Trading volume reached 63.9 million shares, coming in about 823% above its three-month average of 6.9 million shares. Tencent Music Entertainment Group IPO'd in 2018 and has fallen 19% since going public.
How the markets moved today
The S&P 500 added 0.27% to finish Tuesday at 6,717, while the Nasdaq Composite gained 0.47% to close at 22,480. Within internet content & information names, Spotify Technology closed at $525.66, up 0.32%, while PDD Holdings finished at $104.37, rising 0.51%, underscoring Tencent Music’s outsize post-earnings drop.
What this means for investors
Tencent Music Entertainment reported Q4 earnings this morning and grew revenue and EPS by 16% and 15%, respectively. This sales growth beat Wall Street’s hopes, and EPS matched, yet the company’s shares plummeted 25% today as its free monthly active user (MAU) base dropped by 5% to 528 million.
This shrinks the pool of free MAUs the company can try to convert to paying music subscribers and may indicate that increased industry competition is starting to weigh on its results. That said, the company’s average revenue per paying user rose 7%, so shareholders shouldn’t overreact to one quarter’s decline in free MAUs.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Spotify Technology. The Motley Fool has a disclosure policy.
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