The shares of the entertainment company T4F (Time for Fun) plunged 5.83% this Tuesday (6). The company is responsible for the production and sale of tickets for concerts by singer Justin Bieber that were canceled this morning.
The Canadian musician, who was the main attraction last Sunday (4th) at Rock in Rio, would perform at Allianz Parque, in São Paulo, on September 14th and 15th. Before, he would take the stage in Ñuñoa, Chile, this Wednesday (7), and in Buenos Aires, on the 10th and 11th. The shows in Chile and Argentina were also cancelled.
Speculation that Bieber would not perform in Latin America has been circulating on the internet in recent days. On Monday (5), Time for Fun (SHOW3) shares had already plummeted 6.05%.
Until the week before last, Time for Fun had accumulated five consecutive weekly highs on B3, the Brazilian Stock Exchange. In the period, the company’s shares accumulated a gain of 40%.
Last week, the shares closed stable, although they fluctuated sharply. In the last two sessions, however, when rumors circulated and the cancellation was confirmed, the company’s shares accumulated a fall of 11.53%.
The company’s market value dropped around R$27 million in this period, from R$233.9 million to R$206.9 million.
Independent analyst covering Time for Fun, Carlos Herrera, chief strategist at Condor Insider, believes that the events involving Bieber are directly related to the devaluation of the stock.
Herrera explains that the low market value and cheap shares – the unit price was R$ 3.47 at the close of market on Tuesday – make Time for Fun an interesting company for speculators. This investor, however, is more likely to sell assets at the slightest sign of trouble.
“Many bought these shares at the height of the pandemic, when the entertainment sector was at a standstill and the value was very low,” he said. “It’s natural that news like the cancellation of a big show has repercussions on the decision of these investors.”
The producer responsible for the shows published a statement about the cancellation on its Instagram page.
The statement said the cancellation was due to “personal issues”. The singer, who struggled with depression three years ago, is in unstable mental health again. He is also being treated for Ramsay-Hunt syndrome, which causes facial paralysis.
T4F said it will soon release refund information. “To the fans who bought tickets and were anxiously waiting to see their idol, we share your frustration. We are together and hope to have Bieber back in São Paulo as soon as possible”, reads the statement on Instagram.
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