Spotify’s Stock Drops 10%, Erasing $12B in Market Value, as Music Industry Shares Tumble Due to Tariff Worries

Music stocks endured significant losses this week after President Donald Trump announced the tariffs applicable to imported products globally. 

The 20-company Billboard Global Music Index (BGMI) plummeted 8.2% for the week concluding Friday (April 4), representing the steepest single-week drop in the index’s two-and-a-half-year existence. Out of the 17 stocks that experienced declines, eight saw decreases of 10% or greater, while one—iHeartMedia—dipped over 20%. Among the 20 stocks on the index, only three South Korean K-pop firms registered gains for the week.

Global markets faced substantial downturns following the tariffs. In the U.S., the tech-focused Nasdaq fell by 10.0%, and the S&P 500 decreased by 9.1%. The U.K.’s FTSE 100 dropped 7.0%. South Korea’s KOSPI composite index fell 3.6%. In contrast, China’s SSE Composite Index only slipped by 0.3%. 

SM Entertainment topped the week’s performance with an 8.3% gain, surpassing JYP Entertainment’s 3.3% rise and HYBE’s 2.3% increase. No other music stock closed the week with positive returns, although the French company Believe came near with a mere 0.1% drop. 

Spotify dropped 10.3% to $503.30, wiping out roughly $12 billion in market capitalization. While most stocks took a hit on Thursday (April 3), Spotify managed to perform relatively well, losing only 1.2%. However, shares fell 9.9% on Friday (April 4), reducing the once high-flying stock’s year-to-date appreciation to 7.9%. 

Similar to Spotify, Tencent Music Entertainment deviated from the downward trend on Thursday with only a small loss, yet dropped 9.5% on Friday, closing at $12.95 after a 9.9% decline.

Radio companies, heavily reliant on advertising revenue, ranked among the most impacted stocks. iHeartMedia’s shares fell by 26.8% to $1.20, increasing its year-to-date drop to 43.7%. Cumulus Media descended 14.9% to $0.40. SiriusXM decreased 14.2% to $19.51.

Stocks associated with live entertainment also faced severe consequences. Sphere Entertainment Co., which owns the Sphere venue in Las Vegas, declined 19.5% to $26.74, paralleling sharp declines in gaming firms dependent on Las Vegas tourism, such as Wynn Resorts (down 14.9% this week) and Caesars Entertainment (down 9.7%). Sphere revealed on Friday that it is currently producing two new experiences: The Wizard of Oz at Sphere and From The Edge, a film centered on extreme sports. 

Madison Square Garden Entertainment fell 11.9% to $29.71, extending its year-to-date loss to 17.2%. Live Nation had seen a 7.7% increase until Wednesday (April 2) but concluded the week down 3.4% after a total drop of 10.3% over Thursday and Friday. The German concert promoter CTS Eventim witnessed a modest decrease of 6.2%. 

Music stocks commenced 2025 on a positive note, yet tariff concerns have eradicated the index’s preliminary gains. The BGMI has experienced an 18.0% loss in value since February 14 and has decreased in five of the last seven weeks. Mid-February, the index had seen an almost 30% increase in the first six weeks of the new year. By Friday, that year-to-date gain dwindled to 6.3%. 

• Source: NEWHD MEDIA