Sphere Entertainment Co.

Sphere Entertainment Leads Music Stock Rally, Boosting Industry Confidence

NEW YORK – Sphere Entertainment shares surged 11% this week, spearheading a broadly positive performance for music stocks amid shifting market dynamics adn key legal rulings. The gains come as the industry navigates challenges posed by generative AI and evolving artist contracts, signaling renewed investor confidence despite ongoing volatility for some major players.

The broader music stock landscape presented a mixed bag this week, with gains seen across several companies while others faced declines. SM Entertainment rose 6.0% to 102,000 KRW ($69.50), and Reservoir Media increased 4.4% to $7.30. SiriusXM and MSG Entertainment each climbed 3.6%, while Spotify, the largest component of the BGMI, gained 2.6% to $583.62. However, Warner Music Group, Universal Music Group, and CTS Eventim experienced losses.

CTS Eventim fell 0.4% to 84.65 euros ($98.18) after Bernstein lowered its price target to 99.00 euros ($114.83) from 100.00 euros ($115.98), while maintaining an “outperform” rating. Universal Music Group declined 2.3% to 22.61 euros ($26.22), bringing its year-to-date loss to 7.7%. Warner Music Group (WMG) shares dropped 8.0% to $30.69, a decline not directly linked to its recent settlement with generative AI music platform Suno. WMG has fallen 16.6% in the last nine weeks, with UMG down 11.6% over the same period.

K-pop companies also showed divergent performance. SM Entertainment has dropped 14.9% over nine weeks, JYP Entertainment plummeted 33.6%, and YG Entertainment fell 7.5%. Conversely, HYBE gained 12% over the same timeframe, boosted by a Korean court ruling upholding NewJeans’ exclusive contract with HYBE imprint ADOR.