Tencent Music, StubHub Shares Fall Big in Another Off Week for Music Stocks
As the year draws to a close, the music streaming industry is witnessing a turbulent stock market landscape, particularly for companies like Tencent Music Entertainment (TME) and Spotify. TME’s shares plummeted 11% to $18.93 following their third-quarter earnings report, despite the company showing robust growth in online music revenues, which increased by 27.2%, and a 17.2% rise in music subscriptions. Investors, however, appeared concerned about the potential impact on TME’s profit margins as offline revenue streams—such as merchandise sales and live performances—are growing at a faster pace but carry lower gross margins, as highlighted by CFO Shirley Hu during the earnings call. Additionally, Nomura’s recent adjustment of TME’s price target from $30 to $26 further contributed to the negative sentiment surrounding the stock.
In contrast, Spotify managed to regain some ground, with its stock rising 3.1% to $635.81, recovering from a previous decline. This uptick came on the heels of the announcement of a new Premium Platinum plan set to replace the Premium Family plan in select markets, including India and South Africa. Year-to-date, Spotify’s stock has increased by 58.8%, although it remains significantly below its all-time high of $785. Other players in the streaming space, such as Netease Cloud Music, have also experienced significant fluctuations, with a year-to-date increase of 64.8% but a substantial drop of 30.8% over the past nine weeks. Overall, the Billboard Global Music Index, which tracks 19 major music stocks, has faced a steady decline, losing 12.9% over the past eight weeks, underscoring the challenging market conditions that have affected both streaming and traditional music stocks alike.
Further complicating the landscape, StubHub faced a dramatic stock drop of 23.5% after its initial quarterly earnings report as a public company, despite reporting an 8% increase in revenue. The lack of guidance for the upcoming quarter spooked investors, resulting in a significant decline from its IPO price. While Warner Music Group managed a slight gain of 0.4% to $30.36, other companies like Universal Music Group and Cumulus Media have struggled, with the latter’s stock plummeting by nearly 29% this week. Amidst these fluctuations, broader market trends, including concerns about an AI bubble and potential interest rate cuts by the U.S. Federal Reserve, continue to influence investor sentiment across various sectors, including music and entertainment.
As some once high-flying streaming stocks limp toward the end of the year, music stocks have fallen far below their all-time high.
Tencent Music Entertainment (TME) dropped 11.0% to $18.93 after the company reported its third-quarter earnings on Tuesday (Nov. 11). TME reported strong growth in online music of 27.2% and music subscriptions of 17.2%. It’s not clear why investors reacted negatively, but it’s possible they have concerns that TME’s margins will suffer as offline (merchandise sales and performances) revenues grow faster than online revenues; as CFO
Shirley Hu
said during Tuesday’s earnings call, “offline performances and artist-related merchandise sales delivered triple-digit year-on-year revenue growth” in the quarter, adding that those offline revenues have a “lower gross margin.” Another factor was Nomura’s decision on Friday (Nov. 14) to
lower
its TME price target to $26 from $30 while maintaining its “buy” rating.
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Spotify was one of the week’s few winners, rising 3.1% to $635.81 and recapturing some of the previous week’s 5.9% decline. The stock reached as high as $668.49 on Thursday (Nov. 14) after news reports revealed the company unveiled a new Premium Platinum plan that will take the place of Premium Family in five markets, including India and South Africa.
Among streaming stocks, TME is up 66.2% year to date but has fallen 25.9% over the last 13 weeks. Spotify has gained 58.8% in 2025 but is $150 below its all-time high of $785 set in June. Similarly, Netease Cloud Music is up 64.8% year to date but has lost 30.8% in the last 9 weeks.
The 19-company Billboard Global Music Index (BGMI) fell 0.1% to 2,700.25, marking the eighth consecutive week the index has failed to post a gain; over those eight weeks, the index has dropped 12.9%. Only three of the index’s 19 stocks finished the week in positive territory, while two stocks were unchanged and 14 were in the red.
Related
Sony Music’s Quarterly Sales Surge 21% on Streaming, ‘Demon Slayer’ Success
StubHub, which is not included in the BGMI, dropped 23.5% to $14.87 after the company’s first quarterly earnings release as a public company on Thursday (Nov. 13). StubHub reported an 8% increase in revenue but
declined to provide guidance
for the fourth quarter, causing the stock price to fall 21.0% on Friday alone. After the precipitous decline, StubHub is now 36.7% below its $23.50 IPO price.
Warner Music Group (WMG) finished the week in positive territory, rising 0.4% to $30.36. WMG will report results for its fourth quarter and fiscal year on Thursday (Nov. 20).
HYBE dropped 2.6% to 297,500 KRW ($205.24). On Tuesday (Nov. 11), Nomura
dropped
its price target on HYBE to 354,000 KRW ($TK) from 370,000 KRW ($244.22) and kept its “buy” rating. The week could have been worse: HYBE shares rose 4.5% on Thursday (Nov. 13) on news that the members of girl group
NewJeans
will
return to HYBE imprint ADOR
after losing their legal battle to break away from the company. The stock
jumped 18%
in the week ended Oct. 31 after the court’s ruling.
Related
HYBE Revenue Up 38% on Concerts, But Lagging Album Sales Drive Unprofitable Quarter
Universal Music Group fell 0.8% to 22.30 euros ($25.92). On Thursday, Sadif Investment Analytics
trimmed
its price target to 28.56 euros ($33.20) from 28.82 euros ($33.50) and lowered its rating to “hold” from “strong buy.”
On the radio front, Cumulus Media fell 28.8% to $0.0085, bringing its year-to-date decline to 88.9%. Cumulus reported earnings on Oct. 31 but could have been dragged down by iHeartMedia, which reported earnings on Monday (Nov. 10) and finished the week down 12.1% to $4.07.
Markets were mixed as investors contemplated an
AI bubble
and the likelihood of
another rate cut
by the U.S. Federal Reserve. In the U.S., the Nasdaq composite index fell 0.5% to 22,900.59 and the S&P 500 rose 0.1% to 6,743.11. In the U.K., the FTSE 100 gained 0.2% to 9,698.37. South Korea’s KOSPI composite index improved 1.5% to 4,011.57, bringing its year-to-date gain to 64.3%. China’s Shanghai Composite Index fell 0.2% to 3,990.49.
