K-Pop Companies See Surge in Stock Prices Amid Global Music Industry Boom

JYP Entertainment, the talent agency behind popular K-pop acts like TWICE and Stray Kids, closed at a record high of 66,100 won ($47.06) on Friday, up 11.3% for the week and marking its highest closing price since May 10.

The company's shares have gained an impressive 35.6% over the past three weeks, building on their momentum following the announcement of Stray Kids' 20-date stadium tour in North America, Latin America, and Europe earlier this month. This follow-up news seems to be paying off as JYP Entertainment leads a parade of K-pop companies posting gains.

YG Entertainment's shares rose 7.7% as "APT" by ROSÉ and Bruno Mars continued its reign at the top of the Billboard global charts for the fourth week, reaching No. 1 in Japan for the first time. SM Entertainment also improved 4.3%, while HYBE added 4.4%.

Despite the K-pop industry's rising popularity, the broader music market also saw significant gains this week. Live Nation shares surged 8.7% to a record high of $140.26, thanks in part to analysts increasing their price targets and more news on the ongoing lawsuit brought by the Department of Justice.

Live Nation's third-quarter earnings release earlier this month is believed to have contributed significantly to these gains. Additionally, investors are optimistic about the company's prospects under the incoming Trump administration, which may lead to a more favorable settlement in the case.

Spotify also continued its hot streak, gaining 3.7% and reaching its second-highest closing price ever at $475.27. The streaming giant has benefited from record-breaking earnings this quarter, with shares up an impressive 153% in 2024 alone.

Other music stocks like LiveOne gained 12.8%, iHeartMedia improved 8.6%, and the Billboard Global Music Index rose 2.1%. This upward trend is being driven by a strong performance across various sectors, including the United States, UK, Canada, and even South Korea's KOSPI composite index.

However, not all stocks were on the same page this week. German concert promoter CTS Eventim took the biggest hit, falling 9.7% after its third-quarter earnings revealed an increase in revenue but a drop in adjusted EBITDA margin.

The results point to a robust market recovery for the music industry as entire economies recover from recent economic uncertainty. As stocks continue to bounce back with rising revenues across multiple industries, K-pop companies seem to be at the forefront of this revitalized music market boom.