SPECIAL REPORT The Top 7 Stocks for 2024

3 Music Streaming Stocks Set to Hit the Right Notes in 2024

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  • Investors can’t go wrong with any of the picks below.
  • Spotify (SPOT): Reported substantial growth of its monetized user base last quarter.
  • Apple (AAPL): It has over one billion paid subscriptions to its Apple Music service, with future improvements on the horizon.
  • Tencent Music Entertainment Group (TME): An emerging market stock that’s leveraging AI to unlock shareholder value.
music streaming stocks - 3 Music Streaming Stocks Set to Hit the Right Notes in 2024

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These music streaming stocks should be on your watchlist. What I like about these companies is that their valuations are fair, and many of them have great future prospects. Music streaming stocks are anticipated to rise steadily in the future along with their number of monetized users, thus making them worthy of belonging in your portfolio.

So, if you are in the market to buy the best music streaming stocks for 2024 and beyond, then keep reading. Here are three of the best companies to consider.

Spotify (SPOT)

Spotify (SPOT) logo is on the screen of a smartphone with headphones plugged in.
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Spotify (NYSE:SPOT) continues to be a dominant force in the global music streaming market with a vast library of songs, podcasts, and user-generated playlists, giving it a competitive edge over its peers.

​The bull case for SPOT is built on a combination of operational efficiency and strategic innovation. The company has reported a significant improvement in profitability, demonstrated by better-than-expected earnings in the third quarter and an operating profit of 32 million euros, a reversal from the previous year’s loss.

New features like AI DJ and AI Voice Translation have fueled Spotify’s growth.

Looking ahead, Spotify’s positive trajectory will continue. The recent performance has reinforced investor confidence, supported by a 26% year-over-year increase in MAUs and sign that the company is on track to exceed 600 million users for the year. This then makes SPOT one of those music streaming stocks to buy.

Apple (AAPL)

Apple (AAPL) logo brand and text sign on entrance facade store American multinational boutique corporation dealership shop. Apple Layoffs
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Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content.

Apple Music has contributed to Apple’s significant financial milestone of surpassing 1 billion paid subscriptions across all its services and apps.

This achievement, which includes subscriptions from Apple-branded offerings like Apple Music and Apple TV+ as well as third-party app services, marks a 150 million increase year over year. In the June 2023 quarter, Apple’s services unit, which Apple Music is part of, saw an 8.2% growth, reaching a revenue of $21.21 billion.

The growth in Apple Music and other services is part of an overarching strategy that offsets softer sales in other areas, like a slight dip in iPhone sales. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock.

Tencent Music Entertainment Group (TME)

Closeup of smartphone screen with logo lettering of tencent music (TME) online music streaming service on computer keyboard (focus on center of upper black lettering)
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Tencent Music Entertainment Group (NYSE:TME) is a Chinese entertainment platform that has been expanding its user base significantly, showcasing a strong increase in paying users.

There’s good reason to consider adding TME stock to your portfolio. The company reported a notable increase in revenue from its online music services.

This growth has outpaced market estimates, particularly in the company’s online music platform. Furthermore, the revenue from music subscriptions alone saw a 37% year-over-year increase, reaching $399 million. Tencent Music’s advertising services supplement this growth.

Looking forward, the company is investing in artificial intelligence to optimize features and recommendation engines, and there’s an industry-wide push toward higher-resolution streaming, which could further enhance the user experience.

Tencent Music has already made significant improvements to its services, focusing on listening features, recommendation functions, and sound quality.

TME stock is therefore one of those music streaming stocks to buy.

On the date of publication, Matthew Farley did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.


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