Tencent Music Entertainment Group (TME) saw its stock soar 10.55% in intraday trading on Wednesday, building on the momentum from its impressive first-quarter 2025 financial results released on Tuesday. The Chinese music streaming giant reported solid growth in key areas, particularly in its online music subscription business, which has become a significant driver of the company's performance.

TME's Q1 revenues reached $1.01 billion, representing an 8.7% year-over-year increase, primarily attributed to the strength of its online music services. The company's music subscription revenue jumped 16.6% year-over-year to $581 million, while the number of paying users for online music grew by 8.3% to 122.9 million. Investors were particularly encouraged by Tencent Music's improved profitability metrics, with gross margin expanding to 44.1% from 40.9% in the previous year.

The positive financial results have sparked optimism among analysts. Bernstein raised its target price for TME to $15.5 from $15, while CMB International Securities maintained a Buy rating on the stock. The company's focus on long-form audio content, especially through its Super VIP (SVIP) program, was highlighted as a key factor in driving subscriber growth and engagement. With a solid start to the year and a positive outlook, Tencent Music appears well-positioned for sustained growth in 2025 and beyond, which has clearly resonated with investors in the market.