K-pop stocks have rebounded this week from a slide caused by the country's political unrest. HYBE, which was also dragged by news of an investigation of its chairman, Bang Si-Hyukon the company's 2020 initial public offering, led the South Korean music group to gain 8.7% to 205,500 won ($143.16), bringing the stock back to levels from a month ago. Elsewhere, YG Entertainment gained 7.2% to 48,250 won ($33.61) to recoup losses from the previous three weeks, while SM Entertainment and JYP Entertainment had smaller improvements of 3.3% and 2, 6%, respectively.
The Billboard 20 Global Music Index (BGMI) fell 1.6 percent to 2,243.59, marking its first weekly decline in seven weeks. After hitting record highs in each of the previous five weeks, the index was outpaced by losses among 13 of its 20 stocks. BGMI underperformed many major indices. In the United States, the Nasdaq composite gained 0.3% and the S&P 500 fell 0.6%. In the UK, the FTSE 100 lost 0.1%. South Korea's KOSPI rose 2.7% while China's Shanghai Composite fell 0.4%.
The biggest gainer of the week was Abu Dhabi-based music streaming company Anghami. In the absence of market-moving news or regulatory filings, the company's shares rose 17.4% on Tuesday (December 10) on heavy trading. On an average, 80,000 Anghami shares are traded on an average day. However, nearly 3.5 million shares – 5% of the company's shares outstanding – were traded on Tuesday, and another 616,000 shares changed hands over the next two days.
Apart from Anghami and K-pop stocks, only two companies posted gains this week. Universal Music Group, the index's second-biggest company, gained 4.6 percent to 24.46 euros ($25.69), its best closing price since losing 24 percent after second-quarter earnings on July 25. Warner Music Group improved 0.3% to $32.52.
Spotify, the hottest music stock of 2024, had a losing week for the first time since September. The streaming company's share price fell 3.1 percent to $483.31, ending the week 4.6 percent off its all-time high of $506.47 set on Dec. 4. However, investors renewed their faith in Spotify after the company improved its margins while maintaining the same rapid growth rate before it lays off nearly a quarter of its workforce in 2023. Spotify Shares are up 157.2% to date and the company's market value briefly topped $100 billion a week ago.
Shares of Live Nation fell 0.6% to $135.95, despite more analysts raising their price targets on the concert promoter's stock this week. Wolfe Research raised its price target to $160 from $152. JP Morgan raised its price target to $150 from $137. And Roth MKM raised Live Nation to $152 from $132. Live Nation stock is up 45.2% year to date and is one of the best performers on the BGMI.
SiriusXM was the biggest loser of the week after falling 14.8% to $24.11. On Tuesday, the company announced guidance for 2025 revenue that would represent a 2% decline from full-year 2024 revenue guidance. The company also revealed it is doubling down on in-car listening and refocusing on satellite radio after the its old streaming app which gave disappointing results. After the news, Seaport Global lowered its recommendation on SiriusXM stock to “neutral” from “buy.”
In other stock moves, German concert promoter CTS Eventim fell 4.9 percent to 34.37 euros ($36.10). The company announced this week that it has acquired 17% of French ticketing company France Billet. Finally, New York-based live events company Madison Square Garden Entertainment fell 8.5% to $34.37 and radio giant iHeartMedia fell 12.3% to $2.29.
