Music Stocks Hit New High as Sphere Entertainment, Tencent Music Soar

Music stocks — and stocks in general — had a terrific week as Sphere Entertainment Co., Tencent Music Entertainment and Cloud Music posted double-digit gains and the 20-company Billboard Global Music Index (BGMI) set a new high mark.

The BGMI rose 3.1% to an all-time high of 2,794.37, bringing its year-to-date gain to 31.5%. The index has overcome two downturns — one caused by an escalation of trade tensions, the other prompted by President Trump’s announcement of his tariff policy — to surpass the previous record of 2,755.53 set on Feb. 14. 

Sphere Entertainment Co. gained 19.3% to $38.78. The company’s quarterly earnings, released on Monday (May 12), showed the Sphere venue was able to cut costs to offset a decline in event-related revenue. Investors cheered the result: flat operating income rather than a loss. As for tourism to Las Vegas, CEO James Dolan brushed aside concerns and said demand for Sphere concerts is strong enough to withstand a downturn should one arise.

China’s Tencent Music Entertainment (TME) jumped 18.0% to $18.62 after the company reported on Tuesday (May 13) a 17% increase in music subscription revenue in the first quarter. Following earnings, CFRA upped its price target to $18 from $17 but downgraded its rating to “hold” from “buy.” TME, which operates Kugou Music, QQ Music and Kuwo Music, finished the quarter with 122.9 million subscribers, up 8.3% from the prior-year period.

Another Chinese music streamer, Netease Cloud Music, rose 12.6% to 203.40 HKD ($26.03) after the company’s financial results, released on Thursday (May 15), showed an 8.4% drop in revenue that the company attributed to a decline in its social entertainment business. The scant Q1 numbers didn’t provide details on the online music side of the business, but the two sides of the business are going in opposite directions. In 2024, social entertainment revenue fell 26% while online music revenue grew 23%. 

Not only were TME and Cloud Music among the top performers of the week, they are among the biggest gainers in 2025. Year to date, TME shares are up 49.1% while Cloud Music has gained 81.3%. SM Entertainment’s 64.9% gain is the second-best amongst music stocks.

Live Nation improved 8.2% to $147.68 this week despite news that the company and AEG Presents are facing a criminal antitrust probe by the U.S. Department of Justice over pandemic-era refund policies. Live Nation shares are still well below the all-time high of $157.75 reached on Feb. 21, but they’ve gained 14.0% year to date and are up 52.9% over the last 52 weeks. 

Spotify, the index’s most valuable component, rose 1.2% to $656.30. Guggenheim raised its price target to $725 from $675 on the heels of a judge’s favorable ruling in Epic Games v. Apple. Guggenheim sees the ruling, which allows Spotify to display pricing options within the iOS app, as helpful to audiobook monetization. 

German concert promoter CTS Eventim gained 3.2% to 111.90 euros ($124.90). Barclays started covering the company with a 130 euro ($145.12) price target and an “overweight” rating. 

Elsewhere in the index, Universal Music Group and Warner Music Group gained 0.9% and 1.2%, respectively, and HYBE improved 1.9%. SiriusXM jumped 5.4%. 

Only four of the BGMI’s 20 stocks lost value this week. SM Entertainment was the week’s biggest loser with a 5.2% drop. Believe fell 1.3%, Deezer dipped 1.5% and iHeartMedia dropped 1.6.%. 

Stocks were up globally but performed especially well in the U.S. The Nasdaq composite rose 7.2% and the S&P 500 improved 5.3%. In the U.K., the FTSE 100 was up 1.5%. South Korea’s KOSPI composite index gained 1.9%. China’s SSE Composite Index rose 0.8%.

Investors were encouraged by a reduction of U.S. tariffs on Chinese goods while the two countries continue to negotiate a trade deal. Goldman Sachs lifted its estimate for the S&P 500 on Tuesday as tensions over tariffs eased between the U.S. and China. 

There is still uncertainty about the U.S. economy, however. Since last week, numerous reports have warned of a sharp slowdown at the Port of Los Angeles, the nation’s busiest port. This week, Walmart CFO John David Rainey said high tariffs could cause the company to raise prices by the end of the month. And on Friday (May 16), the University of Michigan’s closely watched index of consumer sentiment fell to its second-lowest level on record.