Better-than-feared earnings and a real estate rescue package from the government helped beaten-down Chinese internet stocks find their footing.
The stock market moved higher on Tuesday, as the Nasdaq Composite (NASDAQINDEX: ^IXIC) regained all its losses from Monday and then some. On Tuesday, shares of Singapore-based Sea Limited (NYSE: SE) and Chinese media pioneer Tencent Music Entertainment Group (NYSE: TME) posted stellar gains, suggesting that areas of the world that have proven problematic in the past might now be fertile ground once again for interesting investment ideas. Shares of Sea Limited finished higher by more than 36% on Tuesday.
Shares of Tencent Music (NYSE: TME) were gaining today after the Chinese music streaming company posted strong third-quarter earnings and benefited from braoder gains in China stocks. The company topped estimates on both the top and bottom lines, though revenue declined 5.6% to $1.04 billion, which was ahead of expectations at $994.3 million. Tencent Music is in the midst of a strategic shift from free users to paying ones, meaning it's sacrificing revenue for profitability.