We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Spotify, Apple, Amazon, Sony and Tencent
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 11, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Spotify (SPOT - Free Report) , Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) , Sony and Tencent Holding (TCEHY - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Warner Music Group Files for IPO Amid Music Streaming War
The world of music is digitalizing fast and is controlled today by music streaming services. The days of physical records and CDs dominating this auditory medium are now over. One would think that this would deteriorate record labels profitability, but, in actuality, this has been boosting toplines and expanding margins for those labels savvy enough to evolve with the industry. Warner Music Group is one such beneficiary and just filed documentation to go public on Thursday February 6th, under the proposed ticker: WMG.
While companies like Spotify, Apple Music, Amazon Music, YouTube Music and a slew of others storm the streaming space, record labels like Warner can sit back and enjoy the profits of this growing service. More and more people are subscribing to these services giving customers virtually every song available at their fingertips.
The music industry has been growing fast with streaming making up 80% of its annual revenue, according to RIAA Music Revenues Report. Streaming revenues grew by 26% in the first half of 2019 and are expected to continue at this rapid rate of expansion.
Warner Music has effectively transitioned to the digitalizing music landscape. Digital sales make up a growing majority of the company’s topline and are this music conglomerates strongest growth driver. Digital music sales, driven by streaming, have been growing in the high-to-mid teens over the last three years. These sales exhibit higher margins than physical music sales because of the obvious lack of material investment that records, CDs, and other physical mediums require.
Warner Music Group top labels include Atlantic Record, Elektra Records, and Warner Records, with 100s of hit artists ranging from music icons like Madonna to hot new artists like Lizzo. Warner Music Group is the third-largest music company behind Universal Music and Sony Music.
This IPO is not being used to raise money for Warner Music but rather provide liquidity for its investors. Len Blavatnik‘s privately held conglomerate, Access Industries, acquired Warner Music Group for $3.3 billion. The company has thrived under Access’s leadership, and now Blavatnik wants some return on his investment. Warner’s rival Universal Music Group just sold 10% of its stake to Tencent Holding, which valued the company at $33 billion.
Blavatnik is hoping that his music giant will be valued in close accordance with this competitor, especially considering the robust growth outlook of not only this company but the sector. Goldman Sachs is estimating that the music market will be worth $45 billion in annual revenue by 2030, with streaming being the primary catalyst. This would represent 135% growth from what the industry netted in 2018, according to a WSJ article.
Take Away
The exact date in which Warner Music Group will be debuting its share to the public is yet to be set as well as the number of shares that will be released. This firm has been able to take advantage of the evolving music landscape and is embracing streaming services. The company is on the right side of the music streaming war as new entries to the market only broaden its accessible market.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Spotify, Apple, Amazon, Sony and Tencent
For Immediate Release
Chicago, IL – February 11, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Spotify (SPOT - Free Report) , Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) , Sony and Tencent Holding (TCEHY - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Warner Music Group Files for IPO Amid Music Streaming War
The world of music is digitalizing fast and is controlled today by music streaming services. The days of physical records and CDs dominating this auditory medium are now over. One would think that this would deteriorate record labels profitability, but, in actuality, this has been boosting toplines and expanding margins for those labels savvy enough to evolve with the industry. Warner Music Group is one such beneficiary and just filed documentation to go public on Thursday February 6th, under the proposed ticker: WMG.
While companies like Spotify, Apple Music, Amazon Music, YouTube Music and a slew of others storm the streaming space, record labels like Warner can sit back and enjoy the profits of this growing service. More and more people are subscribing to these services giving customers virtually every song available at their fingertips.
The music industry has been growing fast with streaming making up 80% of its annual revenue, according to RIAA Music Revenues Report. Streaming revenues grew by 26% in the first half of 2019 and are expected to continue at this rapid rate of expansion.
Warner Music has effectively transitioned to the digitalizing music landscape. Digital sales make up a growing majority of the company’s topline and are this music conglomerates strongest growth driver. Digital music sales, driven by streaming, have been growing in the high-to-mid teens over the last three years. These sales exhibit higher margins than physical music sales because of the obvious lack of material investment that records, CDs, and other physical mediums require.
Warner Music Group top labels include Atlantic Record, Elektra Records, and Warner Records, with 100s of hit artists ranging from music icons like Madonna to hot new artists like Lizzo. Warner Music Group is the third-largest music company behind Universal Music and Sony Music.
This IPO is not being used to raise money for Warner Music but rather provide liquidity for its investors. Len Blavatnik‘s privately held conglomerate, Access Industries, acquired Warner Music Group for $3.3 billion. The company has thrived under Access’s leadership, and now Blavatnik wants some return on his investment. Warner’s rival Universal Music Group just sold 10% of its stake to Tencent Holding, which valued the company at $33 billion.
Blavatnik is hoping that his music giant will be valued in close accordance with this competitor, especially considering the robust growth outlook of not only this company but the sector. Goldman Sachs is estimating that the music market will be worth $45 billion in annual revenue by 2030, with streaming being the primary catalyst. This would represent 135% growth from what the industry netted in 2018, according to a WSJ article.
Take Away
The exact date in which Warner Music Group will be debuting its share to the public is yet to be set as well as the number of shares that will be released. This firm has been able to take advantage of the evolving music landscape and is embracing streaming services. The company is on the right side of the music streaming war as new entries to the market only broaden its accessible market.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.