When companies Sony, Warner, and Universal come to mind, do you think of their success in the music industry? COVID-19’s affect on the music industry has maintained long-term uncertainty but boosted some business as well. During lockdown, digital streaming helped keep these titan record labels afloat and aided in positive speculations about their stock price. Read on to learn about the stocks of the three major labels.
Major Record Label Stocks: Sony Music Entertainment, Warner Music Group, Universal Music Group
Sony (NYSE: SONY)
Although Sony Group Corp. (NYSE:SONY) is best known for making PlayStation game consoles and televisions, they also have a huge hand in the movie and music industry. The stock has done surprisingly well amid the COVID-19 pandemic and doubled in price since the pandemic’s initial impact in March 2020.
Sony’s stock price initially declined because of COVID-19 and its semiconductor business slowdown during the global chip shortage. However, the growth of their gaming, music, and financial divisions throughout the pandemic tipped the scales back into balance. Subsequently, Sony’s stock price has risen 50% over the past 12 months and is about $6 off of its 52-week high price of $118.50.
Warner Music Group (NASDAQ: WMG)
In a year to date, Warner Music Group Corp. (NASDAQ: WMG) has made a 61% gain. This is wonderful for people who hold the stock today, but can you still get in to claim a positive gain?
As of their 3rd quarter, total company revenue growth was 27%. Although Warner was majorly impacted by COVID-19 like other businesses, these results are said to reflect the strength of their release schedule and recovery in such an unknown time. Streaming revenue within recorded music grew 27%, while physical revenue also saw a staggering 136% resurgence because of an increase in vinyl sales globally.
Photo by Arian Korte from Unsplash
We’re achieving all of this success by making smart investments in our artists and songwriters. One of our primary goals is to grow our core business through a constant flow of amazing new music, driven by financially disciplined A&R and M&A strategies. We continue to have size, agility, and focus working for us.
Steve Cooper, CEO
Universal Music Group (UMG.AS)
Similarly, Universal Music Group (UMG.AS) has been doing fine, as it remains the world’s biggest record label. They are only cents away from hitting their 52-week high.
The current stock price is $25 and the stock is listed on the European Stock Exchange. Recently, South Korea’s BTS has signed a new distribution and marketing deal with Universal Music Group, dropping Sony Music’s Columbia Records. As BTS is a megaband, this could be huge for the label’s success in the last quarter of the financial year.
Disclaimer: Stock Advice
As always, you should do your own research when it comes to investing. This article’s intention is to highlight the three major labels- Sony Music Entertainment, Warner Music Group, and Universal Music Group- and their respective growths within the stock market.
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