Music Stocks Surged 46.7% in First Half of 2025, Far Outperforming Major Financial Indexes

Amid global economic uncertainty and fluctuating markets, the Billboard Global Music Index (BGMI) surged to a remarkable 46.7% gain in the first half of 2025, driven by strong performances from streaming giants Spotify and Chinese leaders NetEase Cloud Music and Tencent Music Entertainment. 

As music companies largely escaped the economic commotion that roiled markets since March, 12 of the index’s companies posted first-half gains while eight companies lost value. Even though the numbers of gainers and losers were nearly even, the BGMI benefited from gains by the most valuable index components, with nine of its ten most valuable companies increasing in value. Likewise, the worst performers are also the least valuable and thus had little effect on the index’s performance.

The BGMI outperformed major indexes, which posted gains but were hampered by uncertainty surrounding President Trump’s tariff policy and ongoing trade negotiations. The tech-heavy Nasdaq gained just 3.8% while the S&P 500 improved by 4.4%, with both indexes reaching all-time highs in late June. In the U.K., the FTSE 100 rose 6.5%. China’s SSE Composite Index climbed 7.35%. South Korea’s KOSPI composite index jumped 25.8%.

NetEase Cloud Music was the top-performing stock at the mid-year point, gaining 114.8% to 241.00 HKD ($30.70), while Tencent Music Entertainment (TME) jumped 75% to $19.51. TME, the larger of the two companies, had 122.9 million subscribers and a 17% spike in subscription revenue in the first quarter. Both companies are benefitting from a better environment for Chinese tech companies. After a crackdown in 2021 marked by arbitrary penalties, Chinese authorities have revised laws and regulations, providing companies and investors in the country with clarity.  

Spotify surged 64.4% to $755.95, increasing its market capitalization by $61.5 billion in the six-month period. The company’s most recent earnings report shows why investors are bullish on the stock: Revenue rose 15% to $4.54 billion, subscribers grew 12% to 268 million, and gross margin of 31.6% was up 400 basis points from the prior-year period. After going years without turning a profit, Spotify flipped a switch. Since the company laid off roughly a quarter of its staff in 2023, growth has not slowed, and operating profit has ballooned.

With a $157 billion market capitalization — the value of outstanding shares — Spotify accounts for 45.7% of the value of the BGMI. The $61.5-billion jump in value in the first half of 2025 exceeds the value of the next-largest music company, Universal Music Group (UMG, $58.7 billion). To be fair, though, UMG’s dollar-denominated market capitalization was penalized by the dollar’s 13.2% slide against the euro in the first half of the year — its worst start to a year since 1973.

Smaller streaming companies didn’t perform as well as their larger peers. Deezer fell 5.3% to 1.24 euros ($1.45); Anghami slipped 37.2% to $0.49; and LiveOne dropped 45.3% to $0.75. 

With demand for concerts and festivals remaining strong, German concert promoter CTS Eventim led a strong showing by live entertainment companies, rising 25.6% to 105.40 euros ($124.28). Live Nation gained 16.8% to $151.33. MSG Entertainment improved 11.4% to $39.98 after its MSG Networks division negotiated new terms for its long-term debt. Sphere Entertainment Co. was an exception, falling 1.6% to $41.80.

Record labels and publishers had mixed showings. South Korean companies — they’re record labels as well as music publishers, management agencies and merchandise sellers — had excellent showings. SM Entertainment gained 94.2% to 141,000 won ($103.84). HYBE, awaiting the return of BTS after its members’ military service, rose 53.7% to 309,000 ($227.56). JYP Entertainment improved 9.6% to 74,300 won ($54.06).  

UMG rose 14.9% to 27.24 euros ($32.12) and was the only non-Korean company in positive territory. Reservoir Media dropped 9.3% to $7.67. Warner Music Group fell 12.2% to $27.24. Believe’s first-half gain can be attributed to a buyout offer rather than financial performance. Its share price climbed 25.5% to 17.14 euros ($20.21) after the company increased to 17.20 euros ($20.28) per share its original 15.30-euros ($18.05) offer.  

Radio companies had the worst showing of the bunch. After being de-listed from the Nasdaq exchange on May 2, Cumulus Media reached the mid-year mark with an 84.4% decline, to $0.12. The stock now trades over the counter. iHeartMedia dropped 17.4% to $1.76. SiriusXM was an exception, gaining a modest 2.7% to $22.97.