JYP Entertainment, the powerhouse behind K-pop sensations like TWICE and Stray Kids, has been on a remarkable upward trajectory. On Friday, November 22, its shares closed at 66,100 won ($47.06), reflecting an 11.3% increase for the week and reaching the highest closing level since May 10. The surge appears to have been fueled by the announcement on Monday 18 November. of Stray Kids' upcoming 2025 stadium tour. This highly anticipated tour, which will hit North America, Latin America and Europe, has created considerable interest in the industry. However, JYP's stock rally has been gaining momentum for weeks, with the company's shares rising 35.6% over the past three weeks.
The rise of JYP Entertainment was not an isolated event. Other K-pop companies also reported substantial gains this week. YG Entertainment saw its stock rise 7.7%, buoyed by the success of ROSÉ's latest collaboration, “APT,” with Bruno Mars, which held the top spot on Billboard's global charts for the fourth consecutive week and also reached number one in Japan. HYBE, home of BTS, gained 4.4% and SM Entertainment rose 4.3%. Over the past three weeks, the four major K-pop companies have collectively gained an average of 20.7%, effectively reducing their average year-to-date losses to 15%.
Meanwhile, Live Nation Entertainment also experienced a record-breaking week. Shares of the concert organizer rose 8.7% to close Friday at an all-time high of $140.26. This impressive increase was partly driven by analysts raising their price targets for the company. Citigroup increased its target from 130 to 163 dollars, while Deutsche Bank changed its target from 130 to 150 dollars. Live Nation shares have gained 49.8% in 2024, up 19.8% in the past three weeks alone. The company's strong third-quarter earnings, released on Nov. 11, were a driving force behind its growth. Furthermore, investors appear optimistic about the resolution of Live Nation's legal battle with the Department of Justice, anticipating more favorable outcomes under the new US administration following Donald Trump's election victory.
Spotify also continued its rising streak, with shares rising 3.7% to $475.27, marking its second-highest closing price ever. This comes on the heels of a 14.5% gain the previous week, following a stellar third-quarter earnings report that revealed record operating profits for the streaming giant. In 2024 alone, Spotify shares have skyrocketed 153% and are up 23.6% in the past three weeks.
The Billboard Global Music Index, which tracks 20 major music-related stocks, reflected gains across the industry, rising 2.1% to a record 2,208.32. Fourteen stocks in the index ended the week on a positive note, aligning with broader global market trends. In the United States, the Nasdaq Composite and S&P 500 both rose 1.7%, while Britain's FTSE gained 2.5%. South Korea's KOSPI Composite Index performed even better, rising 3.5%. The only notable exception was China's Shanghai Composite Index, which lost 1.9%.
Other notable moves in the music stock market include LiveOne, which rose 12.8% to $0.88 per share, and iHeartMedia, which jumped 8.6% to $2.40. iHeartMedia's rise followed the announcement of a debt restructuring plan designed to reduce financial strain and extend debt maturity dates. By November 14, holders of 85% of the company's outstanding debt had agreed to the new terms, signaling strong support for the initiative.
Despite the overall positive performance, not all titles on the Billboard Global Music Index ended the week on a positive note. German concert promoter CTS Eventim saw its shares fall 9.7%, making it the steepest decliner on the index. The company's third-quarter earnings report revealed higher revenues but lower adjusted EBITDA margins in both the ticketing and promotion segments, which weighed on investor sentiment.
Warner Music Group (WMG) also faced challenges, with its shares falling 3.3% to $31.85 after reporting its latest quarterly earnings on Thursday November 21. The company's performance prompted JP Morgan to lower its price target from $41 to $40, revising its fiscal 2025 adjusted operating profit estimate from $1.527 billion to $1.49 billion. Deutsche Bank followed suit, reducing its price target for WMG from $36 to $34.
The music industry as a whole remains a dynamic and evolving sector, with companies navigating a mix of opportunities and challenges. While major players like JYP Entertainment, Live Nation and Spotify continue to thrive, others like CTS Eventim and Warner Music Group are grappling with market pressures. As the year progresses, the industry's resilience and adaptability will likely play a key role in shaping its trajectory.
