Benzinga: Strong Consumer Demand For Live Concerts Undergirds Pure-Play Music ETF (MUSQ)
Below is an excerpt from an article written by Josh Enomoto and appeared in Benzinga on 7/31/24:
Live Nation Entertainment Inc. has been in the news recently thanks to the disclosure of its second-quarter earnings report. On paper, the results were mixed, with earnings per share of $1.03 missing the consensus view of $1.06. However, the top line offered a more encouraging framework, which saw Live Nation generating $6.023 billion versus the estimate of $6.018 billion.
While slipping against bottom-line targets is never ideal, context is everything. In particular, despite a relatively stable labor market, U.S. households are still struggling with the lingering challenges of the COVID-19 crisis. One year ago, a research paper cited by Bloomberg noted that most Americans had depleted their pandemic savings, thus raising the specter of an economic downturn.
However, Live Nation stated that total revenues gained 7% year over year. In addition, operating income swung up 21% to $466 million. Most notably, company president and CEO Michael Rapino stated that a wealth of entertainment events have attracted "both casual and diehard fans who are buying tickets at all price points."
Moreover, Rapino pointed out that Live Nation's "strategic investments in hospitality and infrastructure are driving strong returns as more attendees maximize their onsite experiences." Such observations reinforce the optimism toward the global live events sector. According to Research and Markets, this ecosystem could soar from last year's valuation of $58.91 billion last year to just over $754 billion in 2030, implying a compound annual growth rate of 53.78%.
The ETF: While Live Nation represents a key player in the in-person entertainment industry, it's not the only name in town. To enjoy the convenience and profitability potential of the top leaders in music, investors may consider the pure-play thematic exchange-traded fund MUSQ Global Music Industry ETF
With MUSQ, investors enjoy a basket of securities rather than exposure to a single opportunity. For instance, while LYV stock represents one of the mainline holdings of the MUSQ fund, the ETF also carries LiveOne Inc, a digital media company which focuses on the monetization of live music, among other audio-entertainment specialties.
What's more, MUSQ offers exposure to foreign enterprises, such as South Korea's YG Entertainment. This company operates as a record label, talent agency and event management firm, offering U.S. investors unprecedented breadth in the wider music and audio entertainment ecosystem.
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.
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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