Is K-Pop Not As Profitable As Investors Thought? SM, YG, And JYP Stock Prices Plummet
News reports of the stock market prices for the big three K-Pop entertainment agencies SM, YG, and JYP plummeting to an all time low has been surfacing recently.
According to Bloomberg, the last time stocks were at an all time low like this was back in 2012. In addition, a financial analyst from Shinhan Investment Corporation stated that a lot of people are currently open to selling stocks as the earnings for the third quarter would most likely not live up to the high expectations it had.
SM’s stocks dropped 18.18%, YG’s dropped 12.41%, and JYP’s dropped 21.85%.
The question then becomes about whether K-Pop’s profitableness is still something worthwhile. For one thing, we’re living in an age where K-Pop is more amplified in US media than ever before in history. But how is it that the corporations are raking in less than what was expected?
To say that K-Pop is dying and not profitable doesn’t seem to make any sense considering the momentum it has now. Some have brought forth the suggestion that issues such as piracy are now showing their detrimental effects on the industry more clearer than ever. Another has stated that the stock prices are still considerably higher than in the past, meaning that the big three agencies reached an all time high and now are dropping back to normal rates.
What do you think is the reason for the sudden plummeting of stocks?