HYBE Shares Slip Amidst Legal Problems as K-Pop Stocks Suffer a Losing Streak

While the S&P 500 reached a new record close every day this week, music stocks had more middling performances and K-pop companies extended their losses. 

HYBE, home to BTS, fell 4.3% this week as the company faces problems on multiple fronts ahead of its Aug. 6 earnings call. According to reports out of South Korea, HYBE’s headquarters in Seoul were raided on Thursday (July 24) as part of the government’s ongoing investigation into alleged stock fraud by the company’s founder and chairman, Bang Si-hyuk. On Tuesday, three HYBE employees were convicted of insider trading and given jail time. 

Things were looking up for HYBE just last month. In early June, HYBE shares rose on news that six of seven BTS members had finished their military duty, marking a step in the group’s long-awaited return. But after reaching a high mark for 2025 of 316,000 KRW ($228.54) on June 24, HYBE shares have fallen 18.8%.  

K-pop stocks are in the midst of a summer slump. SM Entertainment dropped 4.6% this week and has fallen 11.6% over the last five weeks. YG Entertainment is down 12.7% over the last four weeks after slipping 2.1% this week. JYP Entertainment sank 6.1% this week, but its loss over the last six weeks is a more modest 7.2%. Despite the recent downturns, the four K-pop companies have had a strong 2025, posting an average year-to-date gain of 45.0%. 

The 20-company Billboard Global Music Index (BGMI) rose 0.2% to 2,988.97 for the week ended Friday (July 25), bringing its year-to-date gain to 40.7%. Only seven stocks finished the week in positive territory, while 11 stocks were in the red and 2 stocks were unchanged. Believe, which is implementing a mandatory squeeze-out to obtain the remaining 1.27% of outstanding shares that weren’t acquired during a tender offer, finished the week unchanged. Its shares ceased trading on Monday, and Believe will not publish its mid-year results. 

Led by Spotify on Tuesday (July 29), a number of music companies report earnings next week. Although Spotify’s share price has been in a slump, some analysts have upped their price targets ahead of the company’s quarterly earnings announcement. This week, Deutsche Bank upped its price target to $775 from $700 and maintained its “buy” rating. Oppenheimer raised its Spotify price target to $800 and upgraded the stock to “outperform” from “market perform.” 

Shares for Deezer, which reports on Wednesday (July 30), were up 5.8% to 1.27 euros ($1.49). Universal Music Group, which releases earnings on Thursday (July 31), rose 3.2% to 27.85 euros ($32.72). SiriusXM, which gained 0.1% to $23.58, also reports on Thursday. 

Meanwhile, Live Nation is slated to report earnings on Aug. 6. The concert promoter’s share price increased 1.6% to $152.98 this week, marking its highest closing price since Feb. 24. 

Netease Cloud Music, which had been on a hot streak over the previous eight weeks, was the biggest loser of the week after dropping 11.0% to 269.00 HKD ($34.27). Sphere Entertainment Co. also had a large decline, falling 5.6% to $43.59 as numerous reports this week highlighted a decline in tourist visits to Las Vegas.