3 Stocks Hitting The Right Note On World Music Day
Zacks Investment Research | Jun 21, 2017 06:13AM ET
Since returns are music to investors’ ears, there’s no better way for us to observe World Music Day than with lucrative picks from companies involved in this business.
If the therapeutic effect that music has on the human mind and soul is felt in stocks, then there’s nothing like it. Last year, the U.S. music industry put up a stellar performance, raking in revenues of $7.65 billion per the Recording Industry Association of America (RIAA). This represents substantial growth of 11.4% from 2015.
While the revenue is half of the $14.6 billion peak reached in 1999, it marks the first double-digit growth in almost 20 years thanks to growing streaming services. Streaming revenues shot up 68.5% year over year to $3.93 billion and account for more than half of the music revenue.
Notably, the global music market grew 5.9% to $15.7 billion in 2016, marking the biggest year-over-year rise in revenues since the International Federation of the Phonographic Industry (IFPI) began tracking the market in 1997.
While there are several companies involved in the music business, a few have seen their stock prices surge along with the recovering music industry over the past one year. Below we have presented three such stocks that are good bets.
Apple Inc. (NASDAQ:AAPL)
Investors could get exposure to music through Apple Music. Launched in 2015, Apple Music is a streaming music service based on Beats Music that has drawn listeners with playlists made by experts not algorithm. It costs $9.99 per month and users can download music from an extensive digital library. Apple Music offers listeners a free, three-month trial and reached 27 million users as of June 27.
The stock has returned 51.7% over the past one year compared with the gains of 50.7% for the Zacks categorized Zacks Investment Research
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