Surging Stocks: These Music Industry Picks See Boost After Exceeding Expectations

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 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 AMZN and Apple Inc 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 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 (3.51%) and Sonos (2.51%) as well as Amazon (7.95%), Apple (6.32%), and many more.

​​Photo by Namroud Gorguis on Unsplash.