8 Best Music Stocks to Buy According to Hedge Funds

4. Warner Music Group Corp. (NASDAQ:WMG)

Number of Hedge Fund Holders: 30

Warner Music Group Corp. (NASDAQ:WMG) is a global music entertainment company across recorded music, music publishing, and artist services. It operates through the Recorded Music and Music Publishing segments. The firm operates in more than 70 countries around the world.

The company is home to an unparalleled family of creative artists, songwriters, and companies with its legacy going back over 200 years. The firm’s Recorded Music arm encompasses many of the world’s most visionary artists and labels, with a rich catalog boasting some of the most influential recordings in music history. This division includes renowned labels such as 10K Projects, Asylum, Atlantic, Elektra, Warner Records, Warner Classics, and Warner Music Nashville.

Additionally, Warner Chappell Music, WMG’s music publishing arm, publishes and administers genre-spanning music while representing the work of some of the most legendary composers in the industry. It has a catalog of more than one million copyrights spanning every musical genre. Furthermore, the firm’s network of brands and entertainment destinations uniquely positions it as a media and culture powerhouse.

The firm witnessed strong Recorded Music subscription streaming growth driven by a robust slate and healthy industry trends in its third quarter. It also demonstrated continued momentum in Music Publishing driven by strength in Digital and Performance. Operating income rose 10% to $207 million as compared to $189 million in the prior-year quarter while cash provided by operating activities increased to $188 million relative to $146 million in the prior-year quarter. Commenting on the bright prospects for the firm, Bryan Castellani, CFO, of Warner Music Group, stated:

“Our Q3 results were highlighted by strong margin expansion and operating cash flow growth, reflecting robust streaming performance and disciplined cost management. Looking ahead, we are focused on delivering a strong close to the year. The industry remains healthy and we continue to position ourselves for long-term success.”

Warner Music Group Corp. (NASDAQ:WMG) is one of the best music stocks to buy. The company efficiently brings together songwriters, artists, entrepreneurs, and technology moving entertainment culture across the world while having a dominant position in the music arena.