Tencent Music vs Credo

This page compares Tencent Music Entertainment Group and Credo Technology Group Holding Ltd, outlining their business models, financial performance, and market context in a neutral, accessible manner. It highlights where they align and differ to help readers understand the sector, without making forecasts or recommendations. Educational content, not financial advice.

This page compares Tencent Music Entertainment Group and Credo Technology Group Holding Ltd, outlining their business models, financial performance, and market context in a neutral, accessible manner....

Comparison Snapshot

Key Financial Metrics

TME

Metric

CRDO

$25.65B

Market Cap

$27.68B

59.62%

Potential Profit

59.75%

Buy

Analyst Rating

Buy

Why It's Moving

Tencent Music Strikes Major Warner Music Deal and Crushes Q1 Earnings, Fueling Growth Momentum

Expanded Warner Music agreement keeps premium international catalog live on TME's QQ Music, Kugou, Kuwo, and WeSing platforms, while venturing into in-car audio and a fresh JV label to scout and promote 'new generation' talent.
Q1 2025 net income soared over 200% to RMB4.29 billion with revenues up 8.7% to RMB7.36 billion, driven by paying user expansion and higher ARPPU from SVIP memberships and innovative content.
CEO Ross Liang touted sustained user lifetime value gains from diverse products, underscoring TME's edge in China's fast-expanding music ecosystem.

Sentiment:

🐃Bullish

Tencent Music Strikes Major Warner Music Deal and Crushes Q1 Earnings, Fueling Growth Momentum

Expanded Warner Music agreement keeps premium international catalog live on TME's QQ Music, Kugou, Kuwo, and WeSing platforms, while venturing into in-car audio and a fresh JV label to scout and promote 'new generation' talent.
Q1 2025 net income soared over 200% to RMB4.29 billion with revenues up 8.7% to RMB7.36 billion, driven by paying user expansion and higher ARPPU from SVIP memberships and innovative content.
CEO Ross Liang touted sustained user lifetime value gains from diverse products, underscoring TME's edge in China's fast-expanding music ecosystem.

Sentiment:

🐃Bullish

Investment Analysis

Tencent Music

TME

Pros

Dominates China’s online music market through leading platforms like QQ Music, Kugou, and Kuwo, with a strong moat in music streaming and social entertainment services.
Demonstrates robust profitability and cash flow, with net income above $1.4 billion and healthy interest coverage, suggesting financial resilience.
Diversified revenue streams beyond music subscriptions, including live streaming, online karaoke, podcasts, and music videos, reducing reliance on any single product.

Considerations

Faces regulatory risks in China, including potential tightening of content rules and antitrust scrutiny, which could impact growth and margins.
Valuation multiples (price/earnings, price/sales) appear elevated compared to global audio peers, raising questions about future returns at current prices.
Growth in core music streaming may slow as the Chinese market matures, with user acquisition and monetisation becoming more challenging.

Credo

CRDO

Pros

Specialises in high-performance connectivity solutions for data infrastructure, a critical enabler for AI, cloud, and 5G growth, with significant technological differentiation.
Benefits from strong secular demand tailwinds as hyperscalers and telecom providers invest heavily in next-generation data centre and network infrastructure.
Maintains a capital-efficient business model with high gross margins, reflecting premium pricing power and limited capital expenditure requirements.

Considerations

Operates in a highly competitive semiconductor sector where larger rivals with greater scale and resources could erode market share over time.
Exposure to cyclical swings in data centre and telecom capital expenditure may lead to revenue volatility during industry downturns.
Valuation reflects high growth expectations, leaving little margin for error in execution or any slowdown in end-market demand.

About The Companies

Tencent Music (TME)

Tencent Music Entertainment Group (TME) is one of China’s leading digital music and audio entertainment platforms, combining music streaming with social features such as live streaming, karaoke-style apps and audio interaction. The company monetises through paid subscriptions, advertising, virtual gifts, and content licensing partnerships with labels and creators. With a market capitalisation near $38.6 billion, TME sits at the intersection of content, community and commerce within China’s sizeable online-audio market. Potential growth stems from rising paid-music penetration, deeper monetisation of social features and expansion into podcasts and audio formats; however, investors should weigh regulatory scrutiny in China, competition from local rivals, high content and licensing costs, and sensitivity to consumer discretionary spending. Review recent user metrics, revenue mix and regulatory updates before forming a view. This is general educational information only, not personalised investment advice — values can fall as well as rise.

Credo (CRDO)

Credo Technology Group Holding Ltd is a company focused on delivering high-speed connectivity solutions for the data infrastructure market. As the demand for bandwidth grows, Credo aims to break through limitations with its technology. Its solutions are designed to improve power efficiency for optical and electrical Ethernet applications, targeting emerging high-speed markets like 100G, 400G, and even 1.6T. The company's products are built upon its proprietary Serializer/Deserializer (SerDes) and Digital Signal Processor (DSP) technologies. Its offerings include integrated circuits (ICs), active electrical cables (AECs), and SerDes Chiplets, alongside intellectual property (IP) licensing. For investors, Credo represents a specialist player in the critical infrastructure that underpins our increasingly data-driven world. As with any investment, its value can go down as well as up, and returns are not guaranteed. This general information is not a recommendation to invest.

Tencent Music (TME) Next Earnings Date

Tencent Music Entertainment Group's next earnings date is scheduled for March 17, 2026, prior to market open. This report will cover the fourth quarter of 2025 results. Investors should note that dates remain subject to official confirmation from the company.

Tencent Music (TME) Next Earnings Date

Tencent Music Entertainment Group's next earnings date is scheduled for March 17, 2026, prior to market open. This report will cover the fourth quarter of 2025 results. Investors should note that dates remain subject to official confirmation from the company.

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Comparison Snapshot

Why It's Moving

Tencent Music Strikes Major Warner Music Deal and Crushes Q1 Earnings, Fueling Growth Momentum

Tencent Music Strikes Major Warner Music Deal and Crushes Q1 Earnings, Fueling Growth Momentum