Sphere, MSG Entertainment Lead Music Stocks in Fifth Consecutive Weekly Gain

Led by two entertainment companies in the Dolan family portfolio, music stocks collectively eked out a small gain this week, marking their fifth consecutive weekly gain after a Trump tariff-induced two-week slide in early April.

Sphere Entertainment Co. shares jumped 18.9% to $28.05 after the company’s quarterly earnings on Thursday (May 8) showed that the Sphere venue’s cost management helped offset a 12.8% decline in revenue. CEO James Dolan told analysts he isn’t concerned about a possible downturn in tourism from a sluggish U.S. economy or a drop in international visitors. “When it comes to concerts,” he said, “demand exceeds capacity, so we have room to absorb any issues.”

MSG Entertainment, another Dolan family-controlled company, rose 7.7% to $33.59 after the company’s quarterly earnings report on Tuesday (May 6) showed a 6% revenue increase and steady consumer spending despite a decrease in event-related revenue due to fewer events. JP Morgan maintained both its “neutral” rating and $41 price target. 

The 20-company Billboard Global Music Index (BGMI) rose 0.8% to 2,717.17, its second-highest mark and its first time above 2,700 since it closed at a record 2,755.53 the week ended Feb. 14. With five consecutive weeks in the black, the BGMI is up 10.2% since President Trump announced his tariff policy and set off a stock sell-off. 

Music stocks outperformed the Nasdaq composite (down 0.3%), the S&P 500 (down 0.6%), the U.K.’s FTSE 100 (down 0.5%) and South Korea’s KOSPI composite index (up 0.7%). China’s SSE composite index gained 1.9%. 

Universal Music Group, which reported earnings on April 29, received a healthy bounce this week, gaining 4.5% to 25.86 euros ($29.10). That brought its year-to-date gain to 13.0%. 

Warner Music Group (WMG) shares fell 8% on Thursday after its quarterly earnings release and finished the week down 9.6% to $30.26. WMG stock was likely impacted by a 0.3% decline in streaming revenue, a metric closely watched by investors. The decline took WMG’s year-to-date loss to 11.8%. Numerous analysts reacted by decreasing their WMG price targets: Morgan Stanley (to $31 from $32), Barclays (to $28 from $31), UBS (to $38 from $41) and TD Cowen (to $36 from $41). 

Radio companies enjoyed a positive week amidst uncertainty about the U.S. advertising market. The greatest gainer of the week was iHeartMedia, which jumped 18.9% to $1.06 ahead of the company’s first quarter earnings release on Monday (May 12). Year-to-date, the radio giant’s shares have fallen 40.8%. SiriusXM rose 5.4% to $20.47.

K-pop companies had a mixed week. YG Entertainment spiked 9.9% after the company reported large increases in both operating income and net profit in the first quarter. Elsewhere, HYBE rose 2.1% while SM Entertainment, which announced earnings on Wednesday (May 7), fell 0.9% and JYP Entertainment dropped 1.8%. 

Secondary ticketing marketplace Vivid Seats (which is not listed on the BGMI) fell 33.9% to $1.79 after the company’s first quarter revenue plummeted 14% due to what CEO Stan Chia called “softening industry trends amidst economic uncertainty.” While Live Nation previously told investors it’s seeing strong demand for events later in 2025, Vivid Seats painted a different picture. The company suspended guidance for the full year and said it expects industry volumes to be flat or decrease in 2025. Previous guidance called for mid-to-high single-digit growth.