Taylor Swift not only breaking records – it reshapes music works. From the sale of stadium rounds to the leadership of broadcasting platforms to the highest level ever, Swift has become one of the most powerful power in the global entertainment industry. With Swift’s latest announcement of her latest album, SilverAnd the constant tinnitus surrounding her participation with the star of the American Football Association Travis Kelos, the interest in the star was not stronger. In the world of investment, this type of cultural domination creates the effects of ripples outside the musical plans.
Wall Street started noting. Companies associated with music – whether through broadcasting, live events or royalties – apply to benefit directly from the increasing interest in Swift. It translates its impact into more flows, more ticket sales, more goods, and more cultural importance, all flow into the financial results of platforms and promoters behind music.
Three companies in particular will stop what might be called a “new era from Taylor Swift”: Spotify (Spot), Live Nation Entertainment (LYV), and the World Music Group (UMGNF). Each of them has a unique exposure to Swift music, brand strength, and fans’ participation. However, let’s take a closer look at these shares.
Its value is estimated at the market ceiling $ 140.3 billion, a digital flow platform based in Stockholm that provides users to reach a wide range of music, podcasts and audio books. The company was a pioneer in the “freeemium” model, as it provides a free version with ads and not exceeding, along with a paid outstanding version that removes ads and other restrictions. It is known that creating a revolution in the music industry by moving from a transaction -based model to an access -based model, allowing users to flow music upon request.
Podcast podium shares increased by 52.4 % on the basis of a year (YTD). This comes after the stock has already doubled more than twice in 2024. These amazing gains came after the company’s costs were reduced, and it became profitable, and began to show the expansion of the margin, after its criticism as a cash burning company with the economies of the doubtful unit.
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It should also be noted that this superior performance prompted the company’s evaluation to unprecedented levels. The EV/Ebitda ratio is 53.42, or more than five times the average sector, leaving a big area of error.
The new Swift album is set to reinforce Spotify, as all of these are fast will flow on the platform. Swift has about 84 million listeners on Spotify, exceeding 100 billion currents. In December of last year, Spotify stated that the Swift Catalog had generated more than 26 billion streams in 2024, making it the most promised artist on the podium for the second year in a row. Marthejin, a Morningstar analyst, stated that the new Swift album can help strengthen the upcoming “Superfan Tier” from Spotify, which is a distinguished offer for loyal music lovers, and features exclusive advantages such as access to premature tickets.
Spotify released the latest quarterly report on July 29, as it sent the stock to less than 11 % after it missed revenue and profits expectations and issued weak expectations for the current quarter. The company unexpectedly fluctuated to a loss of 42 euros per share due to the highest expenditures expected to compensate the employees, while its revenues increased by about 10 % on an annual basis (YOY) to 4.19 billion euros. However, the company’s growth in excellent subscribers and monthly active users (MAUS) exceeded expectations, with net additional additions of 18 million and 18 million, respectively, during the quarter. However, the Spotify member’s engine continued to get a floor in the Q2, which wipes well for its long -term expectations. For the third quarter, the administration expects that 710 million maus, 281 million subscribers, and the total revenue of 4.2 billion euros.
Analysts track the company’s project, an increase of 13.97 % year on an annual basis in the arrow profit to $ 6.51 for the fiscal year 2025, as revenues will grow by 23.35 % from the previous year to 20.08 billion dollars.
Most of the Wall Street analysts see more bullish trend of the spot, giving the arrow a collective classification for “moderate purchase”. Of the 33 analysts who make recommendations for the share, 20 evaluating it as a “strong purchase”, they advise “moderate purchase”, and the remaining 11 are recommending to keep. The average target price for the immediate share is $ 744.22, which represents 9.1 % of the closure price on Friday.
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Live National Entertainment is a global leader in the live entertainment industry. The company creates revenues by organizing and producing live musical events in the places it owns, operates or rents, sells tickets through mobile applications and its Tickketmaster company, and securing care and ads that enable companies to communicate with the masses in their live events. The maximum LYV market is currently $ 38.6 billion.
The shares of the ticket company and direct events increased by 28.6 % YTD. LYV shares have witnessed great fluctuations earlier this year, but have since went up, largely driven by strong demand for live entertainment, company strategic initiatives, and the feeling of positive market.
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LYV Stock is traded at 113.26 times from modified profits forward, exceeding 2022 levels, when estimated spending on entertainment and entertainment increased after birth. This noble evaluation may be bound alongside more bullish direction and suggests that investors may want to wait for a withdrawal, for example, to the level of $ 150 (where there is a fair value gap (FVG)), before thinking about buying shares.
I think it is clear how you will benefit from Live National Entertainment from the latest Swift album. If Swift takes this album on a tour, LYV can watch a boost, as fans vigorously spend to watch their favorite artist live. It can enhance multiple revenue flows, including tickketmaster sales, VIP packages, and online fees.
Live National Entertainment mentioned the results of her profits in the second quarter in early August. Its total revenues amounted to $ 7 billion, an increase of 16 % on an annual basis, mainly driven through its basic concerts. A concert revenue increased by 19 % on an annual basis to $ 6 billion, supported by 14 % in global presence to 44 million fans. The total modified operating income (AOI) increased by 11 % on an annual basis to $ 798 million, driven in the first place by the concert sector, which achieved a record of $ 359 million per quarter. Meanwhile, the tickets that were already sold for 2025 have jumped to more than 130 million, with a significant increase from 95 million in the previous quarter, with this momentum reflected in the postponed revenue – 25 % Ui to $ 5.1 billion for concerts and 22 % Yi to 317 million dollars. It is impossible to overlook the strong international growth of the company, while attending concerts, Ticketmaster GTV, and all care sales with double numbers. However, the company’s main scales definitely move in the right direction, which supports long -term growth forecast.
For the 2025 fiscal year, analysts expect the company’s arrow’s profitability to decrease by 41.90 % on an annual basis to $ 1.59, followed by a strong recovery to $ 3.12 the following year. Meanwhile, LYV revenues are expected to grow by 12.12 % year on year to $ 25.96 billion this year.
The Wall Street Lyv testers considered “strong purchase”, at an average target price of $ 174.15, indicating the upscale capabilities of 4.6 % of the closing price on Friday. Of the 22 analysts covering the arrow, 19 recommends “a strong purchase”, one suggests “moderate purchase”, and the second remaining give the “comment” classification.
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With the maximum market of $ 51.8 billion, the Universal Music Group is the world’s leading musical entertainment company. Its headquarters in the Netherlands, the company is one of the signs of “three adults” recordings, along with Sony Music Entertainment and Warner Music Group (WMG). It carries the rights of the constantly expanded music catalog, including the main contemporary stars such as Taylor Swift and Emineem.
Music shares have gained 10.1 % ytd. The stock is supported by speeding up subscription trends and streaming 2.0 strategy.
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UMGNF shares are traded with EV/EBITDA complications for the 17.18 front, which is more than reasonable for a solid trench company, and most importantly, the multiplier is almost in line with the Warner Music Group, which has a slower growth.
Universal Music Group will benefit from new music with Swift as well. As the Swift record company, UMGNF will get a share of both broadcasting and publishing revenues from its new songs. It is worth noting that Swift’s music generates between $ 40 million and 80 million dollars in the company’s annual revenue, according to Wolf research analysts.
On July 31, Universal Music Group announced its financial results for the Q2. Revenue grew by 4.5 % on an annual basis in a fixed currency to 2.98 billion euros, driven by growth in the scriptous music and music. More precisely, recorded music revenues increased by 3.9 % on an annual basis, while music deployment revenues grew by 14.5 % on an annual basis. Subscription revenues increased by 8.5 % on an annual basis in the fixed currency, the fourth consecutive quarter of high -number growth, which has been achieved even without the full impact of the 2.0 broadcast initiatives. At the same time, promotion revenues decreased by 12.7 % on an annual basis, although it was expected that the decrease in light of the lighter release list was expected. On the profitable front, the image remains strong, as the modified Ebitda increased by 7.3 % on an annual basis in a fixed currency to 676 million euros. However, the basics showed a strong momentum, which strengthened confidence in the long -term growth path of the Global Music Group.
Analysts revenue universal Music Group to increase 11.33 % year -based to $ 14.21 billion in the 25th fiscal year, although consensus profit estimates are not available. Also, there is currently no Wall Street coverage.
On the date of publication, Oleksandr Pylypenko did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
