Netease Cloud Music & Warner Music Stocks on Hot Streaks, Though Trade War Leads to Overall Decline

Music stocks had a mixed week as markets fell in reaction to President Trump’s escalating trade war.  

On the positive side, Netease Cloud Music added to its hot streak by rising 8.9% to 241.00 HKD ($30.70) in the week ended July 11. The Chinese music streamer, which was the top music stock in the first half of 2025 after gaining 114.8%, has risen another 12.0% since June 30, pushing its year-to-date gain to 136.3%.

Warner Music Group (WMG) is also on a roll. In the week ended July 11, the company’s stock rose 1.3% to $29.77, cutting its year-to-date loss to 3.8%. After losing 12.2% in the first half of the year, WMG shares have gained 9.3% in July as investors reacted positively to the July 1 news of the company’s cost-cutting measures. On Wednesday (July 9), Bank of America Securities upgraded WMG to “neutral” from “underperform” and increased its price target to $33 from $28, citing the benefits of layoffs and licensing agreements with music streaming services. Bernstein lifted its price target to $34 from $32 on July 3. WMG will announce results for its fiscal third quarter on Aug. 9.

The 20-company Billboard Global Music Index (BGMI) had 11 winners to 9 losers but fell 3.7% to 2,896.56, its second consecutive weekly decline. Some of the most valuable companies on the index lost ground: Live Nation fell 3.7%, Spotify dropped 2.2% and HYBE fell 1.6%. Foreign exchange was another factor as the dollar gained 0.7% against the euro, making euro-denominated stocks such as Universal Music Group (UMG) less valuable when converted into dollars to calculate the dollar-denominated BGMI. The BGMI reached a high mark of 3,112.87 in the week ended June 27. 

As President Trump threatened a 35% tariff on goods imported from Canada and steep tariffs on foreign drugs, U.S. indexes were slightly down and foreign indexes gained ground. The Nasdaq composite fell 0.3% to 20.547.67 and the S&P 500 also dipped 0.3%, finishing the week 6,259.75. The U.K.’s FTSE 100 rose 1.3% to 8,941.12. South Korea’s KOSPI composite index jumped 4.0% to 3,175.77. China’s Shanghai Composite Index improved 1.1% to 3,510.18. 

Three K-pop companies were among the week’s best performers. JYP Entertainment gained 4.9%, SM Entertainment rose 4.4% and YG Entertainment improved 2.0%. HYBE was an exception, stumbling 1.6% and bringing its loss in July to 12.3%. HYBE chairman Bang Si-hyuk may face criminal charges over allegations he misled the company’s early investors ahead of the company’s 2020 initial public offering.  

On the streaming front, Spotify fell 2.2% to $766.95. The audio streaming giant had one of the best performances of the first half, gaining 64.4% and adding $61.5 billion in market value. In July, however, it has already lost 7.5%, and its year-to-date gain is down to 58.5%. The company will announce its second quarter results on July 29. 

Finally, Music streamer LiveOne was the week’s biggest loser after falling 14.1% to $0.75. The stock has fallen 45.3% this year.