In a week with little news or regulatory filings, music stocks ended the final week of 2024 with a third straight weekly loss. The 20-company Billboard Global Music Index (BGMI) fell 0.6% to 2,155.51, cutting year-to-date gains to 40.5%. The index fell 5.5% in three weeks after rising 14.6% for six consecutive weeks. For the week, six stocks advanced, 13 stocks declined, and one stock was flat.
Two of the three major music labels are among this week’s handful of honorees. Universal Music Group rose 1.4% to 24.70 euros ($25.75) and Warner Music Group rose 0.9% to $31.45. Elsewhere, iHeartMedia announced on Monday (December 23) that it had completed a debt exchange, reducing its long-term debt burden by $440 million and extending its maturity date. The company’s stock price rose 1.1% to $1.91.
Independent music companies all experienced declines. Reservoir Media fell 4.3% to $8.86 and Believe fell 4.0% to 13.78 euros ($14.37). All four Korean companies also fell: YG Entertainment fell 2.6%, HYBE fell 2.5%, JYP Entertainment fell 2.0% and SM Entertainment fell 1.6%.
BGMI Spotify, the most valuable music company, fell 0.8% to $456.48, marking its third consecutive weekly decline. Although the stock has fallen 9.9% since hitting an all-time high of $506.47 on December 4, Spotify remains the best-performing music stock in 2024.
In other stock news, Chinese music streamer Tencent Music Entertainment (TME) fell 1.8% to $11.72. On Friday, 86Research upgraded TME to a “buy” rating with a price target of $14. Year to date, TME shares have gained 30.1%.
The biggest loser this week was SiriusXM, which fell 8.6% to $21.13. SiriusXM’s 61.4% decline in 2024 was the second-largest decline among BGMI stocks, behind Cumulus Media’s 86.5% decline.
Music stocks lagged global markets. In the United States, the Nasdaq rose 0.8% and the S&P 500 rose 0.7%. Britain’s FTSE 100 rose 0.8%. China’s Shanghai Composite Index rose 1%. South Korea’s KOSPI composite index remained unchanged after falling in three of the past four weeks.
