Benzinga: Surging Stocks: These Music Industry Picks See Boost After Exceeding Expectations
MUSQ is featured as a vehicle to gain exposure to companies in the music industry. The article highlights music companies that have reported earnings that exceeded expectations.
Below is a story written by Johnny Rice, and appeared in Benzinga on 3/7/24:
Spotify
- Revenue: $4.05 billion, up 16% from the previous year.
- Operating expenses: $953 million, down 15.2% from the previous year.
- Net loss: $76.25 million, down 74% from the previous year.
- Earnings per share: -0.36, up 74.3% from the previous year.
Spotify Technology (NYSE:SPOT) easily exceeded guidance set for new users. The company added 10 million – 1 million were expected – active users to its platform in Q4, bringing its 2023 number up to 31 million new users.
In an effort to reach profitability, the company cut roughly 17% of its workforce as well as introducing a price hike for the first time 10 years.
Despite still reporting a net loss and slightly missing earnings targets, the growth of users and reduced costs sat well with investors. The stock jumped close to 4% when they were releases last month and is up over 15% in total since.
Sonos
- Revenue: $612.87 million, down 8.8% from the previous year.
- Operating expenses: $202.42 million, up 1.84% from the previous year.
- Net income: $80.95 million, up 7.66% from the previous year.
- Earnings per share: $0.84, up 6.33% from the previous year.
Sonos Inc (NASDAQ:SONO) is in a tough market; consumer electronics has been shrinking since the pandemic. Despite this and competing with the likes of Amazon.com Inc (NASDAQ:AMZN) and Apple Inc (NASDAQ:AAPL), Sonos is winning market share.
Despite the drop in sales, Sonos handily beat guidance and was able to boost its bottom line and earning per share. The company attributes this to lower component costs, better product mix and less need to purchase parts quickly.
The stock jumped 12% when the numbers were released and since then is up 14.2% in total.
MUSQ
Investing in companies like Spotify and Sonos – and the music industry at large – can be a smart move as part of a diversified approach. For investors who wish to leave the deep analysis and research to a team of experts, ETFs can be an attractive option.
The MUSQ Global Music Industry ETF (NYSE:MUSQ) is a thematic ETF that provides concentrated exposure to the complete music ecosystem, covering streaming, content and distribution, live music events and ticketing, satellite and broadcast radio, equipment and technology, and artificial intelligence.
The fund is well diversified and includes both Spotify and Sonos, as well as Amazon, Apple, and many more.
For a full list of MUSQ holdings, please click here. Holdings subject to change.
Benzinga was compensated by MUSQ for writing and publicizing this content.
Diversification does not guarantee a profit or protect against a loss.
The above third-party article represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the fund or any security in particular. MUSQ claims no responsibility for its accuracy or the reliability of the data provided. Any opinions expressed in this article reflect analysis at the date of publishing and are subject to change.
MUSQ Global Music Industry Index ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the MUSQ ETF prospectus, which should be read carefully before investing and can be obtained by visiting https://musqetf.com or by calling 1-855- MUSQ-ETF(687-7383).
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