Stocks for music lovers are having a rough week, as many major streaming companies saw their shares plummet. The latest earnings reports from some of the biggest players in the industry have investors worried about the future of the business.
Tencent Music Entertainment (TME), the parent company of QQ Music and Kugou, fell 11% to $18.93 after its third-quarter earnings report showed strong growth but also revealed that offline sales are outpacing online revenue. This has led some analysts to lower their price targets for the stock, citing concerns about margins.
Spotify was one of the few winners in this latest round of earnings reports, rising 3.1% to $635.81 after it announced a new Premium Platinum plan that will replace Premium Family in five markets. However, even Spotify's shares are down 25.9% over the last 13 weeks, and the company is still 58.8% below its all-time high.
Another streaming stock, Netease Cloud Music, has also seen its share price fall, dropping 30.8% in the past nine weeks despite a strong year-to-date gain of 64.8%.
The Billboard Global Music Index (BGMI), which tracks the performance of 19 major music companies, fell 0.1% to 2,700.25 for the week. This is the eighth consecutive week that the index has failed to post a gain, and it's down 12.9% over those eight weeks.
Other music stocks also saw significant declines this week. StubHub, an online ticket reseller, fell 23.5% to $14.87 after its first quarterly earnings release as a public company, citing concerns about guidance for the fourth quarter. The stock is now 36.7% below its initial public offering price.
Warner Music Group (WMG) was one of the few winners in this latest round of earnings reports, rising 0.4% to $30.36 after it announced plans to report results for its fourth quarter and fiscal year next week.
HYBE, the parent company of BTS and other K-pop acts, fell 2.6% to 297,500 won ($205.24) despite an announcement that the members of NewJeans will be returning to HYBE's ADOR imprint after a brief departure.
Universal Music Group fell 0.8% to 22.30 euros ($25.92), while Cumulus Media plummeted 28.8% to $0.0085, bringing its year-to-date decline to 88.9%.
Tencent Music Entertainment (TME), the parent company of QQ Music and Kugou, fell 11% to $18.93 after its third-quarter earnings report showed strong growth but also revealed that offline sales are outpacing online revenue. This has led some analysts to lower their price targets for the stock, citing concerns about margins.
Spotify was one of the few winners in this latest round of earnings reports, rising 3.1% to $635.81 after it announced a new Premium Platinum plan that will replace Premium Family in five markets. However, even Spotify's shares are down 25.9% over the last 13 weeks, and the company is still 58.8% below its all-time high.
Another streaming stock, Netease Cloud Music, has also seen its share price fall, dropping 30.8% in the past nine weeks despite a strong year-to-date gain of 64.8%.
The Billboard Global Music Index (BGMI), which tracks the performance of 19 major music companies, fell 0.1% to 2,700.25 for the week. This is the eighth consecutive week that the index has failed to post a gain, and it's down 12.9% over those eight weeks.
Other music stocks also saw significant declines this week. StubHub, an online ticket reseller, fell 23.5% to $14.87 after its first quarterly earnings release as a public company, citing concerns about guidance for the fourth quarter. The stock is now 36.7% below its initial public offering price.
Warner Music Group (WMG) was one of the few winners in this latest round of earnings reports, rising 0.4% to $30.36 after it announced plans to report results for its fourth quarter and fiscal year next week.
HYBE, the parent company of BTS and other K-pop acts, fell 2.6% to 297,500 won ($205.24) despite an announcement that the members of NewJeans will be returning to HYBE's ADOR imprint after a brief departure.
Universal Music Group fell 0.8% to 22.30 euros ($25.92), while Cumulus Media plummeted 28.8% to $0.0085, bringing its year-to-date decline to 88.9%.
just wondering what happened to the music streaming space... it used to be so promising but now these major players are having a rough time 
. like, i get it, online sales vs offline sales can be tricky, but $18.93 for TME is still pretty low 
. spotify's new plan might help, but 25.9% drop over 13 weeks? 
that's crazy. and wmg rising 0.4% is like a drop in the bucket 
. what's going on? are investors losing faith? or is it just a case of oversaturation? 
i mean idk wut to think anymore tbh but hybe fell 2.6% tho 
and that's somethin' to cheer about 
warner music group rose like 0.4% tho 
so at least thats somethin right 
but the fact that offline sales are outpacing online revenue is a big concern for me 
.
anyone know what's really going on behind the scenes of these earnings reports? 
. and spotify's share price still down by like 25.9% over the last few weeks? that's crazy 
i guess we'll have to wait and see how things play out 
stocks for music lovers r having a rough week 
many major streaming companies are seeing their shares plummet 
and investors are getting worried 
about the future of the business 
after its earnings report showed strong growth but also revealed that offline sales r outpacing online revenue 
despite announcing a new premium platinum plan 
but other music stocks like hybe, universal music group and cumulus media are seeing significant declines 
maybe they're looking for more personalized experiences or alternative ways to consume music 
.
.
. These big streaming companies are having a super rough time and it's like... what's next? 
Will we have to pay even more to listen to our fave tunes? 
. And Spotify, I love you guys! But 25.9% down in a month is crazy 
Anyway, I hope these companies can turn things around soon and give music lovers like me some peace of mind 
i ended up in this tiny little village where everyone knew me by my name 
and we'd have these crazy long conversations about music 
and then i realized like, oh wait, i'm not even listening to music as much as i used to because it's just so easy to get music on the go 
but overall, it's like, the music industry is going through a tough time right now 
. Meanwhile Spotify and Warner Music Group are trying to stay afloat 
. What's next for music lovers? 
. It's all about margins and sales, I guess 
. I mean, can't we just get back to the good ol' days of buying CDs and cassettes at Tower Records or something? 
they deserve better 
it's crazy how one bad week can affect the stock prices of these huge companies 
.
. It's like, we get it, growth might not always translate to profits in the short term... but some kind of clarity would help alleviate some of that uncertainty 
not to mention the rise of online sales vs offline revenue, which is pretty wild