Spotify Share Price Reaches New High as Music Stocks Get Off to Strong Start in 2025

Investors are betting there’s more gas in Spotify’s tank as the streaming company’s stock price reached an all-time high of $511.98 on Friday (Jan. 24) and finished the week at a record closing price of $510.43, up 5.1% from the previous week. Friday’s closing price valued the company at $101.6 billion, an increase of $5 billion in one week.

Spotify shares are off to a fast start in 2025 — rising 14.1% over the 15 trading days so far — after gaining 138.1% in 2024. The Stockholm-based streaming company is forecasting 665 million monthly active users, an increase of 25 million from the prior quarter, and 260 million premium subscribers, up from 252 million in the third quarter. Spotify’s fast-rising stock price mirrors the improvement in the company’s gross margin, which is forecasted to be 31.8% in the fourth quarter, up from 31.1% in the previous quarter.

Live Nation shares rose 3.8% to $140.74 on Friday, falling just shy of the all-time high of $141.18 reached on Nov. 25, 2024. On Thursday, Evercore raised its Live Nation price target to $160 from $150.

The 20-company Billboard Global Music Index rose 3.5% to a new record of 2,303.31, bringing its gain in 2025 to 8.4%. That’s more than double the year-to-date gains of the S&P 500 (up 3.7%) and Nasdaq composite (up 3.3%). A dozen of the 20 music stocks finished the week in positive territory, with three exceeding 5% gains. Of the eight stocks that lost ground, just one fell more than 2%.

The week’s greatest gainer was Chinese music streamer Tencent Music Entertainment, which rose 7.4% to $11.59. On Tuesday (Jan. 21), Morgan Stanley upgraded Tencent Music to “overweight” from “equal weight.” K-pop company SM Entertainment also did well, gaining 7.1% to 84,000 won ($58.76), bringing its year-to-date increase to 11.1%.

Cumulus Media finished the week at $0.88, up 4.8%. The radio company’s shares soared nearly 17% on Thursday (Jan. 23) following news that Matthew Blank resigned from the Cumulus board and was replaced by Steven Galbraith, managing director of Kindred Capital Advisors and among the largest Cumulus shareholders.

SiriusXM shares fell 1.4% to $21.96. On Thursday, Morgan Stanley lowered its price target on the company to $21 from $23. SiriusXM has fallen 3.7% year-to-date and has lost 58.9% over the last 52 weeks.

The worst performer of the week was Deezer, which fell 7.3% to 1.15 euros ($1.21). Deezer shares have fallen 46.5% over the last 52 weeks and are already down 14.2% in 2025.

Stocks performed well globally as earnings season got off to a strong start. According to FactSet, 80% of companies that reported earnings thus far have exceeded expectations, beating the 10-year average of 75%. In the United States, the S&P 500 and Nasdaq composite each gained 1.7%. South Korea’s KOSPI composite index improved 0.5% to 2,536.80. China’s Shanghai Composite Index was up 0.3% to 3,252.63. In the United Kingdom, the FTSE 100 increased less than 1%.

SiriusXM kicks off music companies’ earnings releases on Thursday (Jan. 30). Elsewhere, Spotify announced its fourth-quarter earnings on Feb. 4 while Warner Music Group follows on Feb. 6.