Chinese music streaming companies had another big week after authorities unveiled an economic stimulus plan that will encourage buying of Chinese stocks, with Cloud Music gaining 10.7% to HKD 134.50 ($17.32) and Tencent Music Entertainment rose 9.9% to $13.48. Last week, Cloud Music and Tencent Music gained 31.5% and 24.6%, respectively.
The Billboard Global Music Index (BGMI) rose 0.4% to 1,964.44, its fourth straight weekly gain and third consecutive week the index hit a new record high. With winners and losers spread evenly across the index's 20 stocks, BMGI improved its year-to-date gain to 28.1%.
Outside China, where the Shanghai Composite rose 8.1 percent to 3,336.50, stocks were generally muted this week as investors were uncertain how the widening war in the Middle East would affect the global economy. Oil prices rose 10% this week in part because of President Joe Biden's comment that the US was discussing possible strikes by Israel on Iranian oil production facilities. However, prices remained well below levels reached after Russia invaded Ukraine in February 2022.
In the US, the Nasdaq composite rose 0.1% and the S&P 500 rose 0.2%. In the UK, the FTSE 100 fell 0.5% to 8,280.63. South Korea's KOSPI composite index fell 3.0 percent to 2,569.71.
iHeartMedia was BGMI's biggest gainer of the week, rising 15.2% to $1.97. the radio company's shares are down 3.9% year to date, but are up 142% since hitting a 52-week low of $0.813 on May 28. Otherwise, the most valuable companies in the index had either modest gains or losses. Live Nation gained 2.0% to $110.87. Spotify rose 0.6% to $371.45. HYBE rose 0.3% to KRW 173,500 ($128.82). Universal Music Group fell 2.0% to 23.37 euros ($25.66).
Shares of Sphere Entertainment Co. rose 4.4% to $45.26 as Wolfe Research upgraded the company on Wednesday (October 2) to “outperform”. The company's flagship, the Sphere in Las Vegas, has added more shows to existing residences. The Eagles will perform four additional shows in February, bringing their residency to 24 dates. Additionally, Anyma has added dates on Jan. 10 and 11 — the seventh and eighth shows at the venue for the Italian producer, who will break a streak of legacy rock bands to become the first EDM artist to perform at the Sphere.
Guggenheim reiterated a “buy” rating on Warner Music Group ( WMG ) and slightly lowered its estimate for ad-supported streaming revenue ahead of the company's fourth-quarter earnings. BofA Securities on Friday downgraded WMG to “underperform” from “neutral” and cut its price target to $30 from $33. WMG shares closed the week at $31.14, down 0.2%.
LiveOne shares fell 35.8% after the company cut its guidance for fiscal 2025 following a revised partnership with Tesla in which the carmaker will no longer subsidize some customers' in-auto streaming platform powered by Slacker Radio by LiveOne. The Los Angeles-based company's stock is down 51.4% year-to-date.
K-pop stocks, which saw a sharp decline in 2024, remained muted this week. HYBE, YG Entertainment, SM Entertainment and JYP Entertainment all fell an average of 0.1%, bringing their average year-to-date loss to 32.0%.
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