Spotify rode a post-election wave of market enthusiasm to shut above $400 for the primary time on Friday (Nov. 8), valuing the music-streaming large at practically $80.5 billion. Earlier than ending at $400.68, up 4.1% for the week, the corporate’s inventory reached an all-time excessive of $405.88.
The Stockholm, Sweden-based firm’s inventory worth has elevated 113% in 2024 as the corporate overtook Common Music Group (UMG) as probably the most helpful music firm. When traders started to tire of high-growth streaming firms with little to indicate in profitability, Spotify underwent two main rounds of layoffs in 2023, serving to cut back prices with out sacrificing subscriber development or income. With third-quarter earnings approaching Tuesday (Nov. 12), Spotify will present whether or not it has maintained that momentum. At the least one analyst is optimistic forward of earnings: Deutsche Financial institution raised its Spotify worth goal on Wednesday to $440 from $430.
U.S. inventory markets soared this week following the election of Donald Trump on Tuesday (Nov. 5) and the U.S. Federal Reserve’s determination on Thursday (Nov. 7) to decrease rates of interest by 1 / 4 of a proportion level. On Friday, the Nasdaq composite closed at an all-time excessive of 19,286.78, up 5.7%. The S&P 500 gained 4.7% to shut at a document excessive of 5,995.54. China’s Shanghai Composite Index rose 5.5% to three,452.30. South Korea’s KOSPI composite index improved simply 0.7% to 2,561.15. Within the U.Ok., the FTSE 100 fell 1.3% to eight,072.39.
The 20-company Billboard International Music Index gained 2.4% to an all-time excessive of two,043.02, bringing its year-to-date achieve to 33.2%. The index had 13 shares in optimistic territory whereas six misplaced floor and one was unchanged.
The week’s high music inventory was iHeartMedia, which jumped 16.7% to $2.44 after the corporate introduced it can restructure a lot of its retiring debt and plans to save lots of $200 million in 2025 by way of price cuts and the embrace of expertise. “Expertise is the important thing to rising our working leverage and is a continuing focus for us,” CEO Bob Pittman mentioned throughout an earnings name on Thursday. “It permits us to hurry up processes, streamline legacy methods and it allows our people to create extra, higher and sooner.” iHeartMedia shares are down 8.6% 12 months thus far however have risen 180% since Might 24.
LiveOne gained 15.6% to $0.89 per share after the music streamer introduced that income elevated 14% to $32.6 million and paid members rose 27% to 645,000 in its fiscal second quarter ended Sept. 30. Reservoir Media was one other high gainer, bettering 9.1% to $9.00.
On the dwell entrance, Stay Nation shares rose 5.1% to $123.02 following a post-election day enhance. The live performance promoter is at the moment dealing with a lawsuit from the U.S. Division of Justice however may discover a higher end result from new appointments made by the Trump administration. The election wasn’t the one motive for the inventory’s beneficial properties: Morgan Stanley upped its worth goal to $140 from $120 primarily based on “a mix of robust underlying shopper demand and highly effective artist incentives to tour,” analysts wrote in an investor be aware on Tuesday. Deutsche Financial institution additionally elevated its Stay Nation worth goal to $130 from $122.
Ok-pop shares surged this week regardless of HYBE and SM Leisure each reporting sharp drops in revenue final quarter due partly to weaker recorded music revenues. HYBE shares jumped 6.4% after the corporate reported a 99% drop in internet earnings. Likewise, SM Leisure gained 7.2% the identical week the corporate introduced quarterly internet revenue fell 96% on a 9% income decline and a 36% drop in recorded music income. Traders could have gained optimism from SM Leisure’s announcement it can launch a brand new woman group — its first since aespa debuted 5 years in the past — in 2025 with a single and album launch within the first quarter.
JYP Leisure, which has not but introduced quarterly earnings, shot up 12.6%, and YG Leisure continued its sizzling streak, rising 6.3% and bringing its achieve within the final three weeks to 17.6%. YG has acquired a lift from the success of “APT” by ROSÉ that includes Bruno Mars. The music is at the moment in its second week atop each the Billboard International 200 and Billboard International Excl. U.S. charts.
Tencent Music Leisure (TME) shares rose 2.4% to $11.39 forward of the corporate’s third-quarter earnings on Tuesday (Nov. 12). Bernstein initiated protection of TME with a $14 worth goal. Barclays initiated protection with an “chubby” ranking and a $16 worth goal.
German live performance promoter CTS Eventim was the worst-performing music inventory of the week, dropping 10.4% to 87.70 euros ($94.05). The corporate will launch third-quarter outcomes on Nov. 21. Elsewhere, Cumulus Media dropped 6.4% to $0.88, including to the prior week’s 19% decline, whereas SiriusXM dropped 5.5% to $26.13.
Created with Datawrapper
Created with Datawrapper
Created with Datawrapper
Supply hyperlink
