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  7. 9 Music Stocks To Buy Now For May 2022

9 Music Stocks To Buy Now For May 2022

Jenna Gleespen - February 17, 2022

publicly traded music companies

Read on to find out our picks for the music stocks to invest in for May 2022.

If you’re looking for a new way to invest your money, you may want to consider music stocks.

The music industry is constantly evolving, and it’s not going anywhere, anytime soon, which could make it a solid candidate for investing.

But what music stocks should be on your radar?

We’ve rounded up some of the best music stocks to add to your portfolio today.

music stocks

Best Music Stocks To Buy Now

Amazon (NASDAQ: AMZN)

Amazon is one of the world’s largest companies and one of the most expensive stocks on the market. 

One aspect that makes Amazon so dominant is that it has a huge market share in many industries. 

Music and media streaming is just a small part of its operations, but it still manages to be a significant player in the music space.

Amazon Prime is one of the company’s biggest money-makers at the moment. 

This music service has multiple tiers to appeal to a broad audience. 

Amazon Music Prime provides access to a limited catalog of 2 million songs. 

The more expensive Amazon Music Unlimited has a full catalog of roughly 70 million songs.

One of the most appealing features about Amazon Music is that it integrates with its new Alexa technology. 

When you invest in Amazon, you’re not only investing in music and paid video streaming services — you’re also investing in its comprehensive range of existing products.

In fact, in its last quarter, Amazon Web Services (AWS) became its biggest contributor, possibly more valuable than its e-commerce division.

AWS grew by 39% for the past four quarters in revenue, plus it generated $10 billion, just on ads — more than a 100% increase from last year.

In addition, it recently announced an increase in its Prime subscription by 15%, and it will be interesting to see what the consumers’ reaction will be. 

Overall, this diversity makes Amazon’s stock very popular among investors

Despite the high price of its stock, it could be a great addition to any investment portfolio, as its market share continues to rise.

That being said, past results are not a predictor of future performance, so picking up shares right now does not mean it is a sure-fire way to make profits.

music stocks

Tencent Music Entertainment Group (NYSE: TME)

Tencent Music is a division of the larger Tencent holding group, which is based in China and operates a wide range of entertainment and technology companies. 

The Tencent Music and Media division is a joint venture with Spotify to provide music streaming services in China.

Tencent established its music division in 2016 when it purchased a company called China Music Corporation. 

Tencent Music filed its IPO in the United States in 2018. 

Spotify became a major stakeholder, owning nearly half of Tencent’s shares.

This company currently offers four different music apps in China

These apps can integrate with WeChat, which is also owned by Tencent and is the largest messaging app in the country. 

This makes it easy for the company to market to users in a wide variety of demographics.

These apps have large streaming libraries and also provide platforms for artists to upload their own music. 

It also offers video streaming so users can watch concerts and other music-related content directly from the app.

Tencent Music’s stock price has been on a slow upward trajectory for the last year, which could bode very well for investors.

However, the majority of the Chinese market underperformed last year. 

The country’s economy was in a slump for a variety of reasons, including that real estate was down, the emergence of the Omicron virus, and the ongoing diplomatic issues with Washington D.C.

All these factors made Chinese stocks, including Tencent, struggle last year. 

However, the government announced that the Ministry of Commerce will “make every effort to keep foreign trade running within a reasonable range.”

This includes tax cuts ($17.27 billion) and help with its supply logjam.

This announcement resulted in a surge in share prices recently.

Its business model has managed to be profitable despite economic ups and downs this past year.

This is a good stock to buy for anyone interested in international music.

music stocks

Sirius XM (NASDAQ: SIRI)

Sirius XM has completely transformed the way people listen to the radio.

It is a satellite radio subscription service with hundreds of music and talk show channels.

Like many other companies, Sirius XM struggled during the pandemic. 

The coronavirus pandemic and resulting economic collapse made it difficult for it to keep its sales up.

However, during its last earnings call, the company reported an increase in total revenue by 4.2% year over year.

Subscriber revenues (74.3%) increased 5% year-on-year to $1.70 billion.

This only goes to show the impact of car sales last year on SIRI. 

This is because many car manufacturers include Sirius devices in their new vehicles. 

In 2021, SiriusXM hardware was in roughly 82% of new cars sold in the US, up from 78% in 2017.

Since people are returning to their offices, car sales could increase, which could bode well for this music company.

Sirius’ stock is very cheap at the moment and is more volatile than many other stocks on this list. 

However, this could be the right choice for investors looking for an affordable pick in the music industry.

music stocks

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Publicly Traded Record Labels

Warner Music Group Corp. (NASDAQ: WMG)

If you’re looking for a publicly traded record label, you should put Warner Music Group on your shortlist.

This is a legacy brand that has withstood the test of time.

By investing in WMGC, you’re also investing in other heavy hitters in the music industry, including Atlantic Records, Warner Records, Asylum, and Elektra.

Warner Music Group Corp. (WMG) is one of the world’s leading music companies, with a diverse roster of artists that includes Ed Sheeran, The Rolling Stones, Bruno Mars, and Harry Styles.

The company has a rich history dating back to 1892 when it was founded as an American division of British music company HMV.

Today, WMG is a publicly traded company with a market capitalization of more than $21 billion.

It has a strong financial position, with annual revenue of more than $5.3 billion and earnings of more than $304 million.

WMG’s music catalog is one of its biggest assets. 

The company’s library includes more than 2 million songs, and it has a strong presence in both the recorded music and publishing markets. 

WMG also has a growing digital business, with more than 50 million monthly active users across its streaming platforms.

Global revenue from recorded music is expected to grow to $23.5 billion in 2023.

WMG is well-positioned to benefit from this growth, thanks to its strong catalog, diversified artist roster, and growing digital business.

 

music stocks

 

Music Industry Stocks

Sony (NYSE: SNE)

Sony is another one of the world’s leading record labels.

The company also sells technology products, video games, and other forms of media.

Although Sony has been very influential in the music industry, it is only a small part of its business.

Sony established its music division in the late 1980s when it purchased CBS record group.

Over 30 years later, it continues to expand its music catalog.

It has publishing rights to some of the most notable artists of our time, including Michael Jackson, The Beatles, Bob Dylan, and more.

While Sony’s music division is stable, the area where this company has really seen the most growth is in gaming.

Sony makes the PlayStation 5, which is in huge demand right now.

In fact, the company had trouble keeping it in stock.

This stock has been consistently performing well over the last several years.

The stock only saw a small dip in its share price as a result of the coronavirus and quickly recovered.

Despite the competition from China’s Tencent and Microsoft’s recent acquisition of Activision–the company still managed to grow last year. 

Overall, net income increased by 11.4% last year and $2.43 per share. 

Music sales surged by 11.9%, which was fueled by rising sales of recorded music and music publishing, paid subscription streaming income, and advertising-supported streaming revenues.

Sony’s price-to-earnings ratio is relatively low right now, which is good news for value investors.

Aside from its music segment, its console has been the main driver of growth for Sony this year.

music stocks

Best Music Streaming Stocks

Spotify (NYSE: SPOT)

Spotify is a digital streaming service that has entirely changed the way we listen to music.

The company currently has a library of over 60 million songs.

Spotify also offers podcasts and other media content.

Before the launch of Spotify, consumers tended to buy either hard copies or digital downloads of the music they liked.

Spotify currently has both free and premium streaming options available. 

Spotify saw year-over-year revenue growth throughout the pandemic, despite the stock market crash in the spring.

Its free cash flow has dramatically improved as well.

This data indicates that Spotify has a successful business model.

However, the share prices dipped early this year due to certain issues surrounding its platform.

Spotify is still dealing with artists leaving because of Joe Rogan’s headline-grabbing statements on COVID-19 vaccines on his podcast.

Vaccine-related podcasts are subject to content advisory warnings on Spotify, but the mounting controversy may damage first-quarter growth.

This is despite its outstanding performance last quarter, growing 24% YoY to $3.08 billion.

That’s a $0.24 per share improvement over the previous quarter’s net loss.

There is still a significant possibility that Spotify will hit a billion subscribers this year; thus, this dip may be an excellent long-term purchasing opportunity.

music stocks

Apple (NASDAQ: AAPL)

Apple is another major player in the music and entertainment industry. 

AAPL has consistently been ahead of the curve when it comes to consumer music products and services.

Apple launched the iTunes digital music store in 2001 and launched the first iPod less than a year later. 

This marked the beginning of the mass switch from CDs to MP3 downloads around the world.

In 2015, the company launched Apple Music in an attempt to compete with Spotify.

Apple Music has a massive library of content, with over 70 million songs, live radio, concert videos, and original series. 

It is compatible with all iOS devices, as well as some Android and Amazon devices.

When you invest in Apple, you’re not just investing in music — you’re also investing in one of the largest technology companies in the world.

Apple has a huge and dedicated consumer base, so we could continue to see success from this stock in every area it operates in.

Apple’s stock dipped slightly after the huge tech stocks sell-off early this February.

However, unlike Meta–Apple, Apple resurfaced the same day.

This is because of its strong sales last holiday season, with a full year of $378 billion in revenue. 

The company’s stock is still a solid buy because of its strong market presence. 

music stocks

Publicly Traded Music Instrument Companies

Yamaha (OTC: YAMCY)

Yamaha is one of the few musical instrument companies that are publicly traded. 

This company is based in Japan and is the world’s largest piano manufacturing company.

In addition to pianos, Yamaha also makes guitars, drums, sound mixers, speakers, and other musical tools and instruments. 

The company also runs a record label called Yamaha entertainment group, which releases music and produces concerts.

While Yamaha stock initially struggled during the pandemic, the company has been able to bounce back successfully. 

During the lockdown period, many people decided to pick up music as a new hobby. 

This was great for Yamaha, as it is one of the largest global sellers of personal instruments.

music stocks

Should You Invest In Music Stocks?

While the music industry is constantly evolving, it’s something that will never truly die out. 

Now could be a great time to invest in music stocks, especially those that provide streaming services.

After many years of trial and error, companies have figured out an effective business model for streaming services that is both financially lucrative and convenient for consumers.

Many streaming services are also diversifying, with concert videos, podcasts, and other media.

Music Stocks: Final Thoughts

The music industry is thriving right now, so it could be a good time to start investing in music stocks.

There are plenty of options to choose from that can appeal to almost any type of investor.

When selecting stocks for your portfolio, you’ll want to make sure that the company is financially stable and has the potential for future growth.

Looking at recent earnings reports can give you an idea of what direction the stock may be heading before you buy in.

 

Music Stocks FAQ

Read on for our answers to the most commonly asked questions about music stocks.

Can You Buy Stock in Music?

From streaming to record labels, there are several music-related stocks to invest in. In fact, the industry has been growing recently, thanks to the increase in streaming services.

What Are Some of the Biggest Music Stocks?

Some of the largest stocks include Apple, Spotify, and Sirius. These companies offer a variety of services, including streaming, downloads, and radio.

What Is the Growth Potential for Music Stocks?

The growth potential for music stocks is high, as the industry continues to expand. In particular, streaming services are becoming increasingly popular, and this trend is likely to continue.

What Is the Biggest Music Streaming Platform in the World?

The biggest music streaming platform is currently Spotify. The company had over 180 million paid subscribers and 406 million monthly active users to end 2021. Its market cap is $32.63 billion.

What Is the Leading Music Label Stock to Watch Out for this 2022?

Warner Music Group is the leading music label to watch out for in 2022. The company has a market cap of $21.11 billion and is expected to grow in the years to come.

 

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Jenna Gleespen is a copywriter specializing in finance and investment finance. Originally from the United States, she now calls London, England home.