U.S. stocks are expected to see more volatility this week, since Q2 earnings season comes to its peak, with releases expected from the mega-cap tech stocks, such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Google-parent Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB), and Tesla (NASDAQ:TSLA).
More so, this week becomes even more attractive for investors bearing in mind that, other high-profile companies, such as Boeing (NYSE:BA), McDonald’s (NYSE:MCD), Caterpillar (NYSE:CAT), General Electric (NYSE:GE), 3M (NYSE:MMM), Visa (NYSE:V), Mastercard (NYSE:MA), Pfizer (NYSE:PFE), United Parcel Service (NYSE:UPS), and ExxonMobil (NYSE:XOM) will also share their reports.
Tencent Music Entertainment
Shares of Tencent Music Entertainment Group (NYSE:TME), the biggest streaming music company in China, are thought to be under pressure as worries over the negative effect of ongoing scrutiny by Chinese authorities to crack down on the country’s tech behemoths grow.
TME stock—which has dropped 31% in the last month and 44% year-to-date—finished Friday’s trading session at a new 52-week low of $10.78. It now remains more than 66% below its all-time high of $32.20 hit on March 23rd.
At present rates, the Shenzhen-headquartered online music streaming service—which debuted on the U.S. stock exchange after going public in late 2018 at $13 per share—has a market cap of about $55 billion.
The latest negative news came after China’s State Administration for Market Regulation (SAMR) on Saturday made Tencent and its affiliated companies give up their exclusive music licensing rights.
Tencent and its affiliates—which own more than 80% of exclusive music copyright agreements in China—will be prohibited to hold music licensing rights anymore, the regulator said, while existing agreements must be terminated within 30 days.
All in all, investors are afraid that policymakers in Beijing will further escalate their attempts to constrain the country’s wealthiest business leaders and apply further restrictions aimed to help the government to regain control of the tech sector.