HYBE and JYP Entertainment were among the few music stocks to gain ground this week as global markets fell. HYBE, home to BTS and its members’ solo projects, rose 7.2% to 215,500 won ($146.19), its best closing price since Nov. 20, thanks to news on Friday that BTS member J-Hope is set to Release new music and embark on a new world tour starting on February 28th in Seoul. 5.6% to 71,600 won ($48.57).
The 20-company Billboard Global Music Index (BGMI) fell 1.4% to 2,126.33, the index’s fourth decline in five weeks. Only 5 of the 20 stocks ended the week in positive territory. Apart from HYBE and JYP Entertainment, only CTS Eventim (up 3.4%), Believe (up 3.2%) and Universal Music Group (up 1.1%) posted gains. Three stocks (Cumulus Media, Deezer and Anghami) were flat, while 12 stocks declined for consecutive weeks.
Music stocks have been weighed down by a number of market forces this week. Stocks fell sharply on Friday (January 10) due to healthy employment data, which investors may interpret as a sign that the Federal Reserve will seek to lower interest rates at its January or March meeting. In addition, data released by the University of Michigan on Friday showed that consumers’ expectations for future inflation rose from 2.8% to 3.3%. In the United States, the Nasdaq fell 2.3% to 19,161.63 points; the S&P 500 fell 1.9% to 5,827.04 points. Britain’s FTSE 100 rose 0.3% to 8,248.49 points. China’s Shanghai Composite Index fell 1.3% to 3,168.52 points. South Korea was an exception, with the KOSPI composite index rising 3.0%.
Warner Music Group (WMG) shares fell 5.4% to $29.33 after three analysts lowered their price targets ahead of WMG’s quarterly earnings report on February 6. Tom lowered his price target for WMG to $40 from $44, with the impact on revenue for the latest quarter and the full fiscal year ending September 30, 2025 being 1.7%. Music licensing expectations, while maintaining recorded music subscription revenue growth forecast in the “high single-digit” range. Evercore lowered WMG shares to $35 from $36. UBS downgraded WMG to $41 from $43 and maintained a “neutral” rating.
Spotify reported fourth-quarter earnings on February 4, and shares fell 1.5% to $459.53. Goldman Sachs this week raised its price target for Spotify to $550 from $490. Spotify shares have fallen in five of the past six weeks and are down 9.3% from their all-time high of $506.47 on December 4.
Music streaming company LiveOne was the biggest decliner, falling 12.4% to $1.20. Broadcaster iHeartMedia fell 11.7% to $1.88. SiriusXM continued its losing streak, falling 6.8% to $20.83. SiriusXM shares are down 58.3% in 2024 and down 16.4% in the last three months. K-pop company SM Entertainment fell 5.1% to 68,900 won ($46.74).
