Why Tencent Music Shares Are Soaring Higher Today

Tencent Music Entertainment Group - ADR TME shares are trading sharply higher by 9.49% to $5.77 during Thursday's session. Shares of Chinese companies are trading higher amid strength in Alibaba, which gained following second-quarter results.

Alibaba on Thursday reported mixed second-quarter results. The company also announced its board approved to upsize its share repurchase program by another $15 billion.

What Happened?

Alibaba reported quarterly earnings of $1.82 per share which beat the analyst consensus estimate of $1.64 by 10.98 percent. The company also reported quarterly sales of $29.12 billion which missed the analyst consensus estimate of $29.45 billion by 1.11 percent. This sales figure is a 6.50% decrease over sales of $31.15 billion in the same period last year.

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"We generated another quarter of healthy revenue growth of 3% year-over-year in spite of the impact on consumption demand by the COVID-19 resurgence in China as well as slowing cross border commerce due to increasing logistics costs and foreign currency volatility," said Toby Xu, CFO of Alibaba.

Alibaba says the company's board has also authorized an increase of $15 billion to the company's existing share repurchase program. Alibaba says the program will extend through March 2025.

According to data from Benzinga Pro, TME has a 52-week high of $8.70 and a 52-week low of $2.95.