SiriusXM had its best week since December 2023 this week, leading all music stocks in a week where losers outnumbered winners two to one. The company's shares jumped 12.3% to $2.93 after the company decided to do a 1-for-10 reverse stock split when it merges with Liberty Media watchdog SiriusXM Group later this year. SiriusXM gained 16.4% in the week ending December 15, 2023.
The reverse split is meant to boost SiriusXM's beleaguered stock price. After years of steady growth in its satellite radio business, the company has seen a decline in both revenue and satellite subscribers as it tries to build a competitive streaming service. The company lost 445,000 self-paying subscribers in 2023 — a 1% decline — and posted a 1.4% decline in the first quarter of 2024. The revamped streaming app launched in December for $9.99 a month, about half of its average revenue per user generated by satellite radio subscriptions in 2023.
SiriusXM was the only music stock to post a double-digit gain this week, and one of just six stocks among the 20 companies Billboard Global Music Index to see growth. With 13 stocks falling and one — French music label Believe — unchanged, the index fell 0.3 percent to 1,814.88. On average, live music stocks fared better with an average gain of 0.6%. Other segments fell: streaming shares fell 3.7%, radio shares fell 2.9% and labels and publishers fell 1.3%.
Live Nation rose 4.7% to $92.96, its highest close since June 5. The company's shares are down 8.3% since the Justice Department filed an antitrust lawsuit seeking to break up its concert promotion and ticketing operations, but are steady from an initial slide after the lawsuit. Friday's closing price was just 52 cents below the price the day after the lawsuit was announced on May 23.
Spotify shares rose 1.5% to $317.86 to mark their third consecutive weekly gain. Cost cutting and price growth have helped Spotify stock gain 69.2% in 2024 and 101.8% over the past 52 weeks. There was more pricing news on Friday (June 21), as Spotify unveiled a new “basic” plan in the United States, which costs $10.99 a month and offers users a plan that doesn't include audiobooks. The “premium individual” plan includes music and 15 hours of audiobook listening for $11.99 a month, while the “audiobook access” tier provides 15 hours of audiobook listening and the ad-supported music service for $9.99 a month month.
iHeartMedia was the index's worst performer after falling 17.4% to $1.00. The radio giant's stock is down 62.5% year-to-date amid a weak radio ad market and the steady growth of rival streaming services. LiveOne fell 12.6% to $1.59, bringing its year-to-date gain to 13.6%.
Music outperformed the broader indexes as stocks hit new highs this week. On Thursday (June 20), the S&P 500 hit a new all-time high of 5,503.53 and the Nasdaq composite hit a new high of 17,936.79. For the week, the S&P 500 rose 0.6% to 5,464.62 and the Nasdaq composite was just above breakeven at 17,689.36. In the UK, the FTSE 100 rose 1.1% to 8,237.72 points. South Korea's KOSPI composite rose 0.9 percent to 2,784.26. China's Shanghai Composite fell 1.1 percent to 2,998.14.
