As trade tensions between Washington and Beijing show signs of easing, stocks in the Chinese music streaming sector are experiencing a remarkable surge this week. Netease Cloud Music has seen an impressive increase of 12.1%, reaching a price of 302.40 HKD ($38.55). This gain contributes to a substantial rise of 25.5% for July alone, and a staggering year-to-date increase of 164.8%. Meanwhile, Tencent Music Entertainment (TME), the leading player in China’s music streaming industry, has risen by 8.3%, bringing its share price to $21.43 and enhancing its overall valuation to $36.8 billion, with a year-to-date increase of 71.9%.
The upward momentum of Netease Cloud Music and TME shares has been fueled by solid first-quarter performance results and a growing consumer appetite for music subscription services. This increase in stock value corresponds with a broader positive trend in the Chinese market following the U.S. government’s decision to lift certain export restrictions, which includes permitting the sale of Nvidia’s AI chips to China. Additionally, recent data indicates that China’s gross domestic product expanded by 5.2% in the second quarter, showcasing resilience despite ongoing trade challenges.
Reflecting positive trends in the music industry, the 20-company Billboard Global Music Index (BGMI) has risen by 3.0% to 2,982.90, breaking a two-week losing streak and elevating its year-to-date gain to an impressive 40.4%. This performance notably outpaces the Nasdaq composite index, which only managed a 1.7% increase, and the S&P 500, which recorded a modest 0.6% gain. In the U.K., the FTSE 100 experienced a 0.6% rise, while South Korea’s KOSPI composite index advanced by 0.4%.
Warner Music Group (WMG) continued its upward trend, climbing 4.9% to $31.22, largely supported by a recent upgrade from Rothschild & Co Redburn, which changed WMG’s rating from “sell” to “neutral” on July 15. Despite a downturn of 12.1% reaching the mid-year mark, WMG shares have rebounded with a significant 14.6% rise since the company’s announcement on July 1 regarding plans to save $300 million annually through layoffs and other cost-cutting strategies. Investors are eagerly awaiting the company’s upcoming earnings announcement scheduled for August 7.
Most stocks within the live music sector saw positive performance this week. Sphere Entertainment Co. surged 7.6% to $46.15, marking its highest closing price since February 21 and demonstrating a recovery of over $22 from its low following President Trump’s announcement of reciprocal tariffs on U.S. trading partners on April 3. Live Nation also enjoyed a 4.6% increase, reaching $150.52, bringing it within approximately 5% of its all-time high of $157.75. MSG Entertainment rose by 2.0% to $40.25, while CTS Eventim saw a slight decrease of 1.3%, settling at 103.90 euros ($120.82). Despite the drop, CTS Eventim boasts an impressive 27.3% gain for the year, outshining its peers.
Abu Dhabi-based music streaming platform Anghami experienced a 2.1% increase in its share price, reaching $0.49 after announcing plans to hold an extraordinary general meeting for shareholders. This gathering will address a proposed reverse stock split aimed at keeping the stock listed on the Nasdaq Capital Market. The company must achieve a minimum bid price of $1.00 per share for at least ten consecutive business days by August 18 to maintain its listing.
Conversely, shares of SiriusXM declined by 2.7%, settling at $23.56, following the announcement of an affordable, ad-supported satellite radio tier named SiriusXM Play, priced at under $7 per month. In a strategic move, Morgan Stanley raised its price target for SiriusXM from $21 to $22 while maintaining its “underweight” rating, indicating a cautious outlook for the company.
With ongoing scrutiny surrounding a federal investigation into Chairman Bang Si-hyuk, the stock of K-pop powerhouse HYBE fell by 1.1% to 268,000 KRW ($192.98), marking its third consecutive weekly decline. Despite this, optimism remains among analysts, as Nomura increased its price target for HYBE shares from 270,000 KRW ($194.42) to 370,000 KRW ($266.42) on July 17, maintaining a “buy” rating. Investors are keenly awaiting the announcement of the company’s second-quarter results, which is scheduled for August 6.
Spotify shares experienced a 2.0% dip, closing at $695.18, marking the fourth consecutive week of decline after reaching $772.60 on June 27. Following an impressive 71.4% gain by mid-year, Spotify has faced a 9.4% drop in July. Market watchers are looking forward to the company’s earnings report, which is set for July 29, to gauge future performance.
