Shares of Tencent Music Entertainment Group (NYSE: TME) plummeted 6.49% in pre-market trading on Tuesday, despite the company reporting strong first-quarter results that met or exceeded analyst expectations.

The Chinese music streaming giant announced total revenues of RMB7.36 billion (US$1.01 billion) for Q1 2025, representing an 8.7% year-over-year increase. This was primarily driven by a 15.9% growth in online music services revenue, which reached RMB5.80 billion (US$800 million). The company's music subscription revenues also saw a significant boost, rising 16.6% year-over-year to RMB4.22 billion (US$581 million).

Tencent Music's profitability also showed impressive growth, with net profit attributable to equity holders surging 201.8% year-over-year to RMB4.29 billion (US$591 million). The company's non-IFRS net profit, which excludes certain one-time items, increased by 24.6% to RMB2.12 billion (US$293 million). Despite these positive results, investors appear to be focusing on other factors, possibly including concerns about future growth prospects or broader market trends affecting Chinese tech stocks.