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 stock closed at 66,100 won ($47.06), reflecting an 11.3% increase for the week and reaching its highest closing level since May 10. The surge appears to have been fueled by the announcement on Monday, November 18, of Stray Kids’ upcoming 2025 stadium tour. This highly anticipated tour, which will span North America, Latin America, and Europe, has created significant buzz in the industry. However, JYP’s stock rally has been building momentum for weeks, with the company’s shares climbing 35.6% over the past three weeks.
The rise in JYP Entertainment wasn’t an isolated event. Other K-pop companies posted substantial gains this week as well. YG Entertainment saw its stock rise by 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 a fourth consecutive week and also reached number one in Japan. HYBE, home to BTS, gained 4.4%, and SM Entertainment saw a 4.3% boost. 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. The concert promoter’s shares soared by 8.7% to close at an all-time high of $140.26 on Friday. This impressive rise was partly driven by analysts raising their price targets for the company. Citigroup increased its target from $130 to $163, while Deutsche Bank adjusted its target from $130 to $150. Live Nation’s stock has gained 49.8% in 2024, with a 19.8% increase in just the past three weeks. The company’s strong third-quarter earnings, released on November 11, have been a driving force behind its growth. Additionally, investors appear optimistic about the resolution of Live Nation’s legal battle with the Department of Justice, anticipating more favorable outcomes under the incoming U.S. administration following Donald Trump’s election victory.
Spotify also continued its upward streak, with shares rising by 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’s stock has skyrocketed by 153% and has climbed 23.6% over the past three weeks.
The Billboard Global Music Index, which tracks 20 prominent music-related stocks, reflected the industry-wide gains, rising 2.1% to a record 2,208.32. Fourteen of the stocks in the index ended the week on a positive note, aligning with broader global market trends. In the U.S., the Nasdaq Composite and S&P 500 both rose 1.7%, while the UK’s FTSE gained 2.5%. South Korea’s KOSPI Composite Index performed even better, climbing 3.5%. The only notable exception was China’s Shanghai Composite Index, which dropped 1.9%.
Other notable moves in the music stock market include LiveOne, which surged by 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. As of 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 stocks in the Billboard Global Music Index ended the week on a high note. German concert promoter CTS Eventim saw its shares decline by 9.7%, making it the steepest drop in the index. The company’s third-quarter earnings report revealed higher revenues but a reduction in adjusted EBITDA margins across both its ticketing and promotion segments, which weighed on investor sentiment.
Warner Music Group (WMG) also faced challenges, with its stock falling 3.3% to $31.85 after releasing 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.
