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Posted by yckim124 AKP STAFF 21 days ago

SM, YG, and JYP Entertainment's stock prices tumble

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The "BIG3" agencies of Korean entertainment are seeing a significant plunge in their stock prices.

According to KOSDAQ on October 24, JYP Entertainment's stock plunged 21.85%, SM Entertainment's stocked dropped 18.18%, and YG Entertainment's stock tumbled 12.41% compared to the previous day of trading. 

The big dip in stock prices followed after an analyst announced the agencies would most likely fall short on the estimated earnings for Q3. 


Han Kyung Rae financial analyst of Shinhan Investment Corp. commented, "It's assumed many are attempting to sell their stocks as the analysis stated the 3rd quarter earnings reports wouldn't live up to the high expectations."

According to Bloomberg, "The declines were the worst for the stocks since at least 2012."
47 Share 64% Upvoted

48

Louis_XIV 21 days ago 3
21 days ago

Can't wait to see fans come in here and suddenly act like they know the ends and outs of how the stock market works and how their fav group is responsible for taking down other entertainment companies

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2

looveLess 21 days ago 0
21 days ago

T H I S

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1

waleri 21 days ago 0
21 days ago

LMFAO

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0

NgohiongPuso 21 days ago 0
21 days ago

Sadly, they can say whatever they want.. no matter how trying hard they are at being a "stock market" expert ahahahahahha At least they tried! :)

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8

teleri 21 days ago 0
21 days ago

Can I just point out that those stock prices had reached RECORD highs? There's only so far to go. Prices are STILL above the average if you look at the graphs. Those companies are doing better STILL than they did 10 or even 5 years ago.

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7

Soulbrother 21 days ago 0
21 days ago

IMO a lot of damage is caused as there are too many piracy sites simply getting away with it for years. Companies need to shut them down.

Hulkpop basically has the shit uploaded when it's released and scabs like K2nblog steal those files and call them their own, All while having huge amounts of ads to get their own money off artists work.

I used to be a prime example of it, I would only buy who I truly followed but it's only the past 4 or so years I have actually brought all of the media.


I feel a lot of int fans are so defensive and supportive of kpop they're so passionate about but don't actually buy the products, streaming or liking youtube mv's isn't doing shit. The companies get the money and 1 million views is basically a measly thousand bucks. I do realize there is also a lot of younger fans reliant on parents but that isn't the entire community but a long shot.


It doesn't help how the industry gets bigger every year with even MORE idols.

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7

caribbeangal 21 days ago 1
21 days ago

Here is the Bloomberg article: As BTS Conquers the World, K-Pop Firms Flop on the Stock Market.


P.S not my title

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1

smfhlmfao 21 days ago 0
21 days ago

That was back in April. Also that probably isnt the reason for this atrocity.

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6

NORM 21 days ago 0
21 days ago

Kinda sad how ONE analyst's estimated report can crash your stocks :(

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6

Jichuchi 21 days ago 0
21 days ago

This could only mean mnet is taking over kpop with their survival shows

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5

Atbash 21 days ago 1
21 days ago

JYP Entertainment's stock plunged 21.85%??? Wait until november 5th and we will fix this issue.

TWICE&ONCE!!

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2

Impala 21 days ago 0
21 days ago

this has nothing to do with the financial performance, jackass, JYP is doing quite well, in fact.

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2

eigb10 21 days ago 0
21 days ago

I wonder how Cube's look lmao

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2

Riakvix 21 days ago 0
21 days ago

Been a longtime kpop listener and the problem has been this huge saturated market. There are groups popping up everywhere, competing for a niche fanbase. Those groups from small labels would come, struggle, and disband. Same issue with the veteran groups...maybe now it's just affect the big companies.

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2

Lost_time 21 days ago 0
21 days ago

I'm pretty sure the whole stock market in Korea took a crash. It makes perfect sense why, Big 3 stocks got affected.

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2

kikikpop 21 days ago 0
21 days ago

lol I knew this would happen.

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1

pinkerwinkle 21 days ago 0
21 days ago

Stocks are just going down in general. My mom is in deep depression because of this right now. Sigh.

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1

Impala 21 days ago 0
21 days ago

wtf with the comments about bts.. LMAO I've seen delusional, and then there's bts fans.


it was never a good idea in the first place to go public with this sort of companies anyway.. I'm not surprised. but it wasn't just entertainment companies, it's a trend, so it's expected.

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1

The_Doctor 21 days ago 0
21 days ago

The stocks have been over inflated because KPop has started moving into the North American market. It's just a readjustment and nothing more. Cube dropped close to 8% yesterday and they have been recovering recently from the Hyuna fiasco.

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1

hiroonakamura 21 days ago 0
21 days ago

sounds like loads of people who dont know much about stocks had bought stocks, saw the analysts' comment, got scared and sold like crazy.

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1

ani07 21 days ago 0
21 days ago

thats weird though. sm's stock increased when key had his performance at seoul fashion week. he still has to make his solo debut in november, but seeing the stock increase from just 1 tiny performance is really good. exo still has to make their comeback too, so I believe sm's stocks will increase again by the end of the year.

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1

KyleK 21 days ago 8
21 days ago

I know Big Hit is a private company but if they were public, they would've had record earnings because of BTS world tour.

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1

xSinner 21 days ago 7
21 days ago

has nothing to do with stock preformance



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2

KyleK 21 days ago 3
21 days ago

Explain. I have a friend who is a stock broker and I invest some myself. There's an earnings guidance and investors will pour in money for dividends with great earnings. So you're saying BTS who probably would have a huge earnings guidance and dividends payout if they were public and a record breaking Q3 wouldn't effect stock performance? OK.

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3 more replies

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teleri 21 days ago 2
21 days ago

Cause stocks are like gambling. It's really toxic that we as a society allow our economic well-being to be controlled by this kind of speculation vs actual earnings.

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1

FriedChickenLove 21 days ago 0
21 days ago

I don't understand stock all that much but is it safe to assume they'll be fine and people's favorite groups isn't taking down an entire company?

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0

dizzcity 20 days ago 0
20 days ago

There's a follow-up article on Bloomberg about the analyst's correction and what happened one day later: https://www.bloomberg.com/news/articles/2018-10-25...


I honestly don't get these investors. They obviously don't really understand how financial analysts work. All he said was that these companies will have reduced earnings for one quarter. Not negative earnings - not shrinking or failing. Simply not earning *as much* as predicted. 80% instead of 100% profit is still profit. And its' only for one quarter. Why this should trigger a panic-sell is weird. Heck, if I had the money, I would buy now, since the stock prices are lower.

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0

way0leto 21 days ago 0
21 days ago

and now.. everyone will try to be a stock analyst expert.

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0

UnnieBoy 21 days ago 0
21 days ago

yikes!

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0

rairte 21 days ago 0
21 days ago

It's not just the Kpop market. The Korean tech and bios market also experienced a drop in stocks. That article from Bloomberg was just clickbait. :/

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0

mipcy 21 days ago 0
21 days ago

I know nothing about stock market but I have a lot of thoughts about it and wants everyone to know about it.

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0

pink_oracle 21 days ago 0
21 days ago

Well, how unfrotunate for them I guess.

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0

wonderboy47 21 days ago 4
21 days ago

Who is this insider saying the agencies wouldn't have high profits? I would sue them since it seems they are the direct cause. I know at least for JYPE Stray Kidz is just having a comeback and their sales increase after every one, Twice is about to have a comeback, and Got7 might do a repackage so wtf. That sounds like money to me.

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3

borahae 21 days ago 0
21 days ago

you have no idea what the actual numbers are when it comes to expenses (and even earnings) so you as a random non-financial-analyst passerby who does not have this info cannot judge.

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1

miyagusuku 21 days ago 0
21 days ago

hes not an insider. Hes a financial analyst doing his job. All that means is that the stock is now lower and those with financial knowledge can decide to invest or not based on whether they still think the projections that JYP, SM and YG made will be reached. Or buy and stick around to reap the rewards of more than just 1 quarter in a year. The ones who sold were expecting profits for quick cash, more than likely a lot of amateur stock holders or people who buy and sell repeatedly throughout the year but for smaller quick cash gains.

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0

myma 21 days ago 0
21 days ago

You can't really sue a stock analyst. If the analyst engages in illegal promotion activities, with lots of puts and calls, then the SEC might go after them (in the US). But the typical investor is caveat emptor.

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fadedcolors 21 days ago 0
21 days ago

Ouch damn

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-1

whatever101 20 days ago 0
20 days ago

SM - bleeding money on NCFLOP

JYP - busy paying their bills trying to make STRAY DOGS HAPPEN

YG - cant be bothered to keep up with the lawsuits over MIXNINE


BIGHIT on the other hand be like:



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-1

zadeepzone 21 days ago 2
21 days ago

This is not news to anyone but the die hard BIG3 idols fans .The Big three failed to discover new talents to replace their aging firsts generation idols .The BTS phenomenon proofed that small agencies can make stars

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8

Louis_XIV 21 days ago 0
21 days ago

that's not how the stock market works

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0

looveLess 21 days ago 0
21 days ago

You just didn't get the point of Louis_XIV made about the article *facepalm*

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