I am a K-pop fan and have noticed whenever there is a scandal the stocks of an Entertainment company will drop. I consider this the ideal time to buy stocks more cheaply, but as my broker is the Robinhood app, I do not have access to the Korean Entertainment companies.
Enter the BIGGEST scandal of kpop history, within the past few weeks the stock of YG Entertainment has dropped, up to 14% in one day. If you are looking for a high-risk investment, I would wait for the stocks to drop more (which I think they will) and I would buy stock when it was low.
Now YG Entertainment is known for its past scandals. It is unknown how deeply they are involved with the current scandal, but they also have several talented groups. If the management is able to restructure there is much potential in the international crowd, even if the Korean people don't forgive and forget, for the company to make money.
Furthermore, I think those fans of YG groups should consider investing in what they believe in. Do the fans need to ask themselves if they are still willing to support the other artists? If they currently have the money, they should consider an investment. Unless YG Entertainment fans come across this idea, or think of this idea and share it, for the time being, the stock will continue to drop. As of the writing of this post, the stock is at 36,150 KRW (32 USD.)
I hear from the younger generation that they are too poor to invest in stocks. Yet, they spend lots on albums and tickets. It is true that owning stocks can potentially make taxes more difficult (on Robinhood, only if they earn you more than $10 in dividends a year.)
Know that this is $32 per stock that could disappear if YG Entertainment is unable to recover and goes down completely. If they are involved too deeply in the scandal this is a possibility which is why I say it is HIGH RISK, and also that you might want to wait for the stock to lower more. You must be willing to lose what you invest.
So K-pop fans, do you think YG Entertainment can recover? Do you want it to recover? Do you like the idea of having stock in the company you buy CDs from? Most Brokers would consider this invest too high risk to recommend. I am not a Broker. I just think investing in stocks is a new idea on how to support your artists. This isn't necessarily about return on investment, even if there is a potential for return.
This is the kind of investment only a true YG fan would go through the trouble of figuring out how to accomplish. I personally find investing in Korean Entertainment companies too complicated and would be more likely to go with the MUCH lower risk of JYP Entertainment if I ever bother to figure out how to invest.
There is one factor that is important with investment in Entertainment companies. Scandals are going to happen. Think before jumping ship when something goes down. I like to look at stocks based on their potential instead of value. For example, right now Ford has much lower stock prices than Starbucks so I can get more of them for the same amount. I can invest in Ford and be happy I am supporting Detroit (local stock for me.)
Never invest more than you can afford to lose. This will enable you to hold on through the scandals. Or if you have the money maybe buy a little more stock during the scandals. *wink*
Also, stop looking at stocks the old fashioned way. Stocks are an investment in the community and invest in things you want to last. The return is just a byproduct of supporting the community with such an investment, so invest in what you care about.
I enjoy investing in things I buy from time to time. I have stocks in Starbucks so I can snuggly sip my Teavana Tea and know that I own part of the place. I invested in Nintendo because Robinhood allows that international stock so while my brothers might be better at most video games than me I am the only one who has stock in the company. Imagine the bragging rights that come with owning YG stock if you are perhaps a BlackPink stan?
Do you think YG Entertainment can recover? Do you think YG Entertainment will recover enough you are willing to invest in their stocks? That is what is the real answer to that question.