Why Tencent Music Stock Sank This Week

Tencent Music stock fell 7.2% this week despite reporting Q2 results that beat Wall Street expectations. While sales grew 5.8% year-over-year and earnings exceeded forecasts, investors were concerned about rising operating expenses, declining operating and gross margins, and a 16% decline in social entertainment services revenue. The solid results weren't enough to overcome broader selling pressure in Chinese tech stocks.