Why Warner Music Group Stock Just Popped 9%
Shares of music entertainment company Warner Music Group (NASDAQ: WMG) are up 9.1% as of 3:20 p.m. EST after the company earned an upgrade to overweight (i.e. buy) from investment bank Morgan Stanley.
In Morgan Stanley's view, Warner Music stock that currently costs a hair over $36 is actually worth closer to $40.
The analyst explains that Warner is benefiting from "new digital growth drivers" -- customers who pay royalties for use of its library of licensable songs -- in the form of companies such as TikTok and Peloton Interactive, explains TheFly.com in a write-up today. The more time people spend streaming TikTok or riding Peloton bikes, the more songs they listen to, and the more money these companies have to pay Warner.
Source Fool.com
