{"id":121725,"date":"2024-12-20T21:04:57","date_gmt":"2024-12-21T02:04:57","guid":{"rendered":"https:\/\/www.cyberlego.com\/web\/2024\/12\/20\/music-stocks-dragged-down-amid-dreary-week-for-global-markets\/"},"modified":"2024-12-20T21:04:57","modified_gmt":"2024-12-21T02:04:57","slug":"music-stocks-dragged-down-amid-dreary-week-for-global-markets","status":"publish","type":"post","link":"https:\/\/www.cyberlego.com\/web\/2024\/12\/20\/music-stocks-dragged-down-amid-dreary-week-for-global-markets\/","title":{"rendered":"Music Stocks Dragged Down Amid Dreary Week for Global\u00a0Markets"},"content":{"rendered":"

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\n\tIn a miserable week for stock markets worldwide, Spotify continued to fall from its all-time high, K-pop stocks sank and one of the smallest companies on the Billboard Global Music Index posted a double-digit gain.<\/p>\n

\n\tLiveOne was the week\u2019s biggest gainer as the music streaming company\u2019s shares rose 19.6% to $1.22 after it announced<\/a> on Wednesday (Dec. 18) that its partnership with Tesla surpassed 350,000 subscribers. On Friday (Dec. 20), the company also said it has regained compliance<\/a> with the Nasdaq exchange\u2019s minimum bid price requirement.<\/p>\n

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\t\t\t\t\t\t\"Weverse\"<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

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\t\t\t\t\tHYBE’s Weverse Is Pioneering a New Subscription Model for Superfans, But It’s Not\u2026\t\t<\/p>\n<\/h3><\/div>\n

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\n\tOnly two other music stocks posted gains this week. Sphere Entertainment Co. rose 2.5% to $38.74, bringing its year-to-date gain to 14.0%. Sphere Entertainment shares have lost 12.1% since the company announced its fiscal first-quarter results on Nov. 12. Reservoir Media also improved 2.3% on the week after jumping 4.8% to $9.26 on Friday.<\/p>\n

\n\tThe Billboard Global Music Index (BGMI) fell 3.3% to 2,168.69, lowering its year-to-date gain to 41.4%. Just three of the index\u2019s 20 stocks finished the week in positive territory. After increasing each week from late October to early December, the BGMI lost 4.9% over two consecutive weekly losses. The latest 3.3% weekly decline is only the fourth time in 2024 that the index has dropped more than 3% in a calendar week.<\/p>\n

\n\tStocks\u2019 bad week extended beyond music companies. In the United States, the Nasdaq composite dropped 1.8% to 19,572.60 and the S&P 500 declined 2.0% to 5,930.85. In the United Kingdom, the FTSE 100 was down 2.6% to 8,084.61. South Korea\u2019s KOSPI composite index fell 3.6% to 2,404.15. China\u2019s Shanghai Composite Index dipped 0.7% to 3,368.07.<\/p>\n

\n\tAmong other music companies, Live Nation had a modest decline of just 2%, dropping to $133.17 despite more analysts increasing their price targets on the stock this week. Morgan Stanley raised its price target to $150 from $140 and Benchmark increased it to $160 from $144 and maintained its \u201cbuy\u201d rating.<\/p>\n

\n\tSpotify, the index\u2019s most valuable company, fell for the second consecutive week. After closing above $500 on December 4, Spotify shares dropped 8.3% and closed at $460.88 on Friday, down 4.8% for the week. Overall, streaming had more losers than winners this week. Cloud Music fell 7.9% to 116.60 HKD ($14.99), marking the second-largest decline of the week. SPDB International began coverage of Cloud Music this week at a 145 HKD ($18.64) price target and \u201cbuy\u201d rating. Elsewhere, Anghami fell 3.7% to $0.79.<\/p>\n

\n\tFour K-pop stocks declined an average of 5.1% this week, reflecting the ongoing political uncertainty in the South Korean market. SM Entertainment was down 6.3%, JYP Entertainment fell 5.8%, HYBE dropped 4.3% and YG Entertainment sank 3.9%. Year-to-date, the four South Korean companies are down an average of 18.3%, a far deeper deficit than Universal Music Group (down 5.6% YTD) or Warner Music Group (down 12.9% YTD).<\/p>\n

\n\tiHeartMedia, the week\u2019s biggest loser, dropped 17.5% to $1.89. The radio company\u2019s stock was trading at $1.00 on July 21 and rose to $2.61 on Dec. 6. In the last two weeks, however, its shares have slipped 27.6%.<\/p>\n