WMG

Warner Music Group Corp - Ordinary Shares - Class A

TMT


Presented:10/14/2021
Price:$47.51
Cap:$24.44B
Current Price:$31.22
Cap:$16.17B

Presented

Date10/14/2021
Price$47.51
Market Cap$24.44B
Ent Value$21.81B
P/E Ratio89.95x
Book Value$0.16
Div Yield1.07%
Shares O/S514.39M
Ave Daily Vol843,455
Short Int5.05%

Current

Price$31.22
Market Cap$16.17B
Warner Music Group Corp. engages in the publishing and recording of music. It operates through the following segments: Recorded Music and Music Publishing. The Recorded Music segment involves in selling, marketing, distributing and licensing of recorded music produced by the company's recording artists. The Music Publishing segment acts as a copyright owner and/or administrator of the musical compositions and generates revenues related to the exploitation of musical compositions. The company was founded on November 21, 2003 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Alphabet Inc (GOOGL), Apple Inc (APPL), Facebook Inc (FB), Peloton Interactive Inc (PTON), Pershing Square Tontine Holdings Ltd (PSTH), Snap Inc (SNAP), Sony Group Corp (SONY), Spotify Technology SA (SPOT), Universal Music Group NV (UMG NA), Vivendi SE (VIV FP), Warner Music Group Corp (WMG)

Highlights

The presenter is long shares of Warner Music Group Corp (WMG), the $24B music entertainment company, thinking the business will continue to benefit from increasing streaming revenues and the shift towards short form video/music content (e.g., TikTok, Snapchat, etc.). He models ~20% digital revenue growth for the foreseeable future with high incremental margins off of a $5.2B total revenue and $1B EBITDA base that consensus is projecting for this year. The stock currently trades at ~$45 per share and he sees it appreciating to $70 per share. 

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Idea Discussion

Commentor 1 - 2 weeks ago

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