As some once high-flying streaming stocks limp toward the end of the year, music stocks have fallen far below their all-time high.

Tencent Music Entertainment (TME) dropped 11.0% to $18.93 after the company reported its third-quarter earnings on Tuesday (Nov. 11). TME reported strong growth in online music of 27.2% and music subscriptions of 17.2%. It’s not clear why investors reacted negatively, but it’s possible they have concerns that TME’s margins will suffer as offline (merchandise sales and performances) revenues grow faster than online revenues; as CFO Shirley Hu said during Tuesday’s earnings call, “offline performances and artist-related merchandise sales delivered triple-digit year-on-year revenue growth” in the quarter, adding that those offline revenues have a “lower gross mar

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