Tencent Music Entertainment Group (TME) is a Buy at BNP Exane Paribas on Online Music Services Growth

Tencent Music Entertainment Group (NYSE:TME) is a must-buy non-tech stock to invest in. On November 13, BNP Exane Paribas touted the company’s third-quarter results, which showed significant improvement as it benefits from continued innovations in content enrichment and service expansion.

Tencent Music Entertainment Group (TME) is a Buy at BNP Exane Paribas on Online Music Services Growth

Pixabay/Public Domain

Revenue in the quarter was up 20.6% year over year to $1.19 billion, driven by growth in online music services. Additionally, the company benefited from the Value-Added Services (VAS) segment, which grew 16%, as domestic gaming rose 15% and international gaming surged 42%. The company delivered earnings per share of $0.19. According to the research firm, the solid third-quarter results affirm the long-term investment case for Tencent Music Entertainment.

Likewise, on November 13, Benchmark reiterated that Tencent Music Entertainment is a Buy but cut the price target to $25 from $28. The price target cut comes amid concerns that the rapid expansion of offline events is negatively impacting gross margins, creating pressure on profitability. Nevertheless, the company posted a 50% increase in non-subscription music revenue driven by strong performance in concerts and merchandise.

Tencent Music Entertainment Group (NYSE:TME) is a leading online music and audio entertainment platform that provides music streaming, online karaoke, and live streaming services. It also offers a comprehensive music library and hosts online concerts.

While we acknowledge the potential of TME to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TME and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Best Canadian Penny Stocks to Buy Right Now and 10 Best Mexican Stocks to Invest In.

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