HYBE, the agency behind BTS, saw its stock price plummet after the K-Pop boy group announced that it would be taking a “hiatus” from group activities to focus on its solo business.
Shares of the South Korean entertainment agency fell 28% in the first hour of trading on Wednesday, June 15th, a day after BTS announced hiatus.
According to a Billboard report, HYBE’s stock had fallen as low as 140,000 won per share after opening at 168,000 won.
The company is currently headed for its lowest close since its 2020 IPO, wiping out as much as $1.7 million in market value at the time of this writing.
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wtf i thought y’all were just creating memes of hybe stock.. it’s actually plummeting quickly 😭 pic.twitter.com/5E97DnBMFZ
— trinity👼🏾 (@whatjikookin) June 14, 2022
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In light of the uncertainties surrounding the future of the septet, even before their recent announcement, HYBE has seen its shares drop nearly 60% this year so far, according to The Straits Times. This means that the company has given up almost all of its profits since its debut on the stock market.
Lee Hye-in, an analyst at Yuanta Securities Korea Co., told Bloomberg the company could face sharp downward revisions to its earnings and revenue estimates for this year and next.
If HYBE confirms that BTS will not resume live performances during the year, the company’s revenue could be 25% lower than previous estimates. Your benefit, meanwhile, can be reduced by 33%.
