Warner Music lets you tap streaming demand

Article Excerpt

Warner Music’s recent IPO was successful despite COVID-19 volatility. That shows the strength of the music industry. It continues to benefit from strong demand for music-streaming services, such as Spotify and Apple Music, as well as video apps such as TikTok. With its June 2020 share offering, the company raised $1.9 billion by selling 77 million shares at $25 each. Warner Music is up 17.3% for us since we first made it a buy in our July 2020 issue at $32.56. But we believe the stock is poised to move even higher, and we now recommend it as a Power Buy. WARNER MUSIC GROUP $38.18 is a Power Buy. Through your shares (Nasdaq symbol WMG; TSINetwork Rating: Average) (www.wmg.com; Shares outstanding: 510.0 million; Market cap: $19.5 billion; Dividend yield: 1.3%) you’re buying into one of the world’s leading music entertainment companies. Its record labels include Atlantic Records, Warner Records, and Elektra Records. Musicians selling under these labels include Bruno Mars, Lizzo, Ed Sheeran, Cardi B, Katy Perry, Madonna,…

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