{"id":4181,"date":"2025-08-02T00:13:52","date_gmt":"2025-08-02T00:13:52","guid":{"rendered":"https:\/\/musictechohio.online\/site\/universal-music-spotify-share-price-drops-music-stocks-week\/"},"modified":"2025-08-02T00:13:52","modified_gmt":"2025-08-02T00:13:52","slug":"universal-music-spotify-share-price-drops-music-stocks-week","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/universal-music-spotify-share-price-drops-music-stocks-week\/","title":{"rendered":"Universal Music and Spotify Share Price Declines Highlight a Bad Week for Music\u00a0Stocks"},"content":{"rendered":"
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\n\tFriday (Aug. 1) capped a bloodbath for music stocks, as a weak U.S. jobs report added to losses suffered following some of the largest companies\u2019 second quarter earnings reports.<\/p>\n

\n\tThe 20-company Billboard Global Music Index fell 8.5% to 2,743.63 as 17 stocks lost ground and only two posted gains (one was unchanged). Four companies fell more than 10% and nine dropped more than 7%. The index\u2019s worst week in its nearly three-year history experienced a steeper decline than the 8.2% drop in the week ended April 4, after President Trump announced steep tariffs for U.S. trading partners. In the wake of this week\u2019s shortfall, the index\u2019s year-to-date gain stands at 28.7%.\u00a0<\/p>\n

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\t\t\t\t\tSpotify\u2019s Stock Tumbled After Its Mixed Q2 Earnings \u2014 But Analysts See the Bigger\u00a0Picture\t\t<\/p>\n<\/h3><\/div>\n

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\t\t\t\t\tFoo Fighters Bring on Nine Inch Nails Drummer IIan Rubin Ahead of Asia Tour\t\t<\/p>\n<\/h3><\/div>\n

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\t\t\t\t\tPost Malone’s Ex Drops California Custody Case Over 3-Year-Old Daughter\t\t<\/p>\n<\/h3><\/div>\n

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\n\tStocks were down everywhere. In the U.S., the Nasdaq composite fell 2.2% and the S&P 500 dropped 2.4%. In the U.K., the FTSE fell 0.6%. South Korea\u2019s KOSPI composite index dipped 2.4%. China\u2019s Shanghai Composite Index fell 0.9%.\u00a0<\/p>\n

\n\tThree of the four music companies that reported earnings this week \u2014 Universal Music Group (UMG), Spotify and SiriusXM \u2014 had sizable share price decreases. The fourth, Deezer, managed a low single-digit decline.\u00a0<\/p>\n

\n\tUMG finished the week down 13.6% to 24.06 euros ($27.89). Friday\u2019s 5.2% drop stemmed from mixed second quarter earnings results<\/a> released after the close of trading on Thursday (July 31). Part of that decline could be explained by the overall market\u2019s bad day: On Friday, the AEX, an index of companies that trade on Euronext Amsterdam, fell 1.9%.\u00a0<\/p>\n

\n\tUMG shares started the week poorly, falling 6.7% on Monday (July 28) on news that Cyrille Bollor\u00e9<\/strong> had resigned from <\/a>UMG\u2019s board of directors. Bollor\u00e9 is chairman and CEO of Bollor\u00e9 Group, which owns 18.5% of UMG\u2019s outstanding shares, and is also the major shareholder in UMG\u2019s former owner, Vivendi.\u00a0<\/p>\n

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\t\t\t\t\tUniversal Music Group\u2019s Q2 2025 Earnings: What You Should\u00a0Know\t\t<\/p>\n<\/h3><\/div>\n

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\n\tSome UMG investors may be worried that Bollor\u00e9 may want to sell UMG shares to help the Bollor\u00e9 Group\u2019s buyout of Vivendi, which is being mandated by the French financial regulator, AMF. A major shareholder offloading shares would depress UMG\u2019s price; however, J.P. Morgan analysts believe Bollor\u00e9 \u201cdid not resign because\u00a0Bollore\u00a0plans to sell shares, but because he does indeed want to focus his time on\u00a0Bollore\u00a0Groupe, and it made sense to resign before the anticipated US listing,\u201d analysts wrote in a note to investors on Friday.<\/p>\n

\n\tSpotify fell 9.4% to $627.80 after the company issued lower-than-expected guidance<\/a> for the third quarter. Like UMG\u2019s results, Spotify\u2019s second quarter was a mixed bag<\/a>. Analysts noted strong user trends that were overshadowed by foreign exchange losses \u2014 Spotify reports in euros, which have gained versus the U.S. dollar this year \u2014 and stagnant average revenue per user due to a lack of price increases. Considering the fact that Spotify\u2019s share price had been up 112% in the year leading up to Tuesday\u2019s earnings release, a sharp pullback isn\u2019t surprising.\u00a0<\/p>\n

\n\tSiriusXM shares fell 10.2% to $21.18 after the company continued to lose subscribers <\/a>in the second quarter. Total revenue fell 2% to $2.14 billion while adjusted EBITDA dipped to $668 million from $702 million a year earlier. SiriusXM subscribers were down 460,000 from the prior-year period, although most of the decline came from paid promotional subscribers, not higher-value self-pay subscriptions. The company reiterated its full-year revenue guidance of $8.5 billion, approximately 2.3% less than 2024\u2019s $8.7 billion.\u00a0<\/p>\n

\n\tDeezer shares fell 2.4% to 1.24 euros following the company\u2019s second quarter earnings<\/a> release on Wednesday (July 30). Revenue was flat and subscribers were down, but adjusted gross profit and net loss improved.<\/p>\n

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\t\t\t\t\tSpotify\u2019s Q2 Earnings Results: What You Should\u00a0Know\t\t<\/p>\n<\/h3><\/div>\n

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\n\tSphere Entertainment Co. dropped 5.4% on Friday alone and finished the week down 6.7%. Live Nation, which reports earnings on Thursday (Aug. 7), dropped 4.4%.\u00a0<\/p>\n

\n\tCumulus Media had the week\u2019s best performance, gaining 7.7% to $0.14 per share. SM Entertainment was the only other music company in positive territory, with the K-pop company improving 3.8% to 129,500 KRW ($93.26), bringing its year-to-date gain to 71.3%.<\/p>\n

\n\tOther K-pop stocks fared relatively well. JYP Entertainment fell just 1.1%; HYBE lost 2.1%; and YG Entertainment sank 4.5%.\u00a0<\/p>\n

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Friday (Aug. 1) capped a bloodbath for music stocks, as a weak U.S. jobs report added to losses suffered following some of the largest companies\u2019 second quarter earnings reports. The…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842,387,502,1109,843,3129,3130,118,1110,2522],"tags":[],"class_list":["post-4181","post","type-post","status-publish","format-standard","hentry","category-billboard-global-music-index","category-business","category-business-news","category-hybe","category-music-stocks","category-siriusxm","category-sphere-entertainment","category-spotify","category-stocks","category-universal-music"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/4181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=4181"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/4181\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=4181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=4181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=4181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}