Tencent Music Entertainment Group (TME) shares fell 10.57% on February 12, 2026. The stock closed at $15.15. This followed a closing price of $16.94 on February 11, 2026. After-hours trading saw the price reach $15.20. This represented a 0.32% gain.
SGA Emerging Markets Growth Strategy named the stock a Q4 2025 detractor. The strategy cited rising competition from Douyin-backed Soda Music as a significant concern. Investments in concerts and merchandise are also causing margin dilution.
SGA trimmed its position due to valuation concerns despite the company's strong financial results. The sell-off occurred during a period of broader market volatility but was fueled by company-specific fears. Tencent Music will report its next earnings on March 17, 2026.