whats with sm stocks this year
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selenavvd
Changed the title of the thread from “whats with sm stocks these year” to “whats with sm stocks this year”. -
Good for them!
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The stock market is weird. I think they are predicting a good result this year.
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The stock market is weird. I think they are predicting a good result this year.
until now its been a great year for them
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I read this as socks, and I seriously considered the kinds of themed socks SM might be selling with their merchandise. I tried to think about what big problem there was with them.
In other words, I need sleep.But, uh if SM is doing better, good for them. Their artists have made some successful content so I'd imagine that contributes, but I'm really not a stock market expert so I don't think anything I say on this should be taken as law.
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SM peak in stocks was 2018 when EXO, Shinee and TVXQ were all active and touring this lead to an extremely high market cap because the market consensus was the company would make tons of money. Indeed 2018 was the year SM made the most money, but LSM hates big profit margins because it means taxes, so he started his strategy of making up expenses. As result 2018 profit margin was underwhelming and the market reacted negatively
During 2019 Shinee and EXO then and TVXQ just stopped being so active because they are an aging group. This hit the market consensus and SM market cap decreased over 50% in 2 years. Not surprisingly without their biggest groups 2020 saw the worst liquidity performance in SM in decades
Now NCT can finally meet the same level of profitability of their older groups the market seems confident in SM again. Their current market cap still about 20-25% behind 2018, but if SM doesn't improve their profit margins in next quarters their market cap will start shrinking again because no matter how well NCT is selling, if SM doesn't turn this into profits then it's all for nothing
But I'm not so confident in current SM performance. Shinee and EXO won't be able to hold big concert tours for a while, so SM will really need to rely on Suju, TVXQ and NCT. NCT being touring machines for some years are a given, but I'm not sure if their older acts are so eager to do the same. SM options right now are:
- Somehow manage to make Aespa a touring act in the same level of Twice or Blakcpink. It's hard because they are a girlgroup, but definitely possible
- Debut a new Boygroup to build a fandom and then start touring in the next 2 years, right in time to EXO start touring again, then the main touring acts of SM would be the new BG, EXO and NCT Dream as 127 enlist phase will start to haunting SM
Let's see how things will work
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When will people learn that you cant compare stock prices like that?
Market caps:
JYP: 1.42T
YG: 917.08B
JYP is still leading the big 3 with a large gap, SM and YG compete for 2nd place.
The increase is probably thanks to rumours about LSM selling his stock and potentially stopping leaching off of SM profits.
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Moderator
Moved the thread from forum K-News, Gossip & Rumors to forum K-POP Music.
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