In the Pershing Square Semiannual 2024 Letter for Q2, Universal Music Group (AMS:UMG, Financial) was highlighted as a significant holding that experienced a notable decline in stock price. This decline was primarily attributed to a slowdown in subscription and streaming revenue growth, which fell from double-digit to mid-single-digit rates. Despite this short-term setback, Pershing Square remains optimistic about UMG's long-term growth potential, citing the under-monetization of music and opportunities for price increases as key drivers.
"We believe that UMG’s underperformance this quarter will prove to be short-term in nature and does not impact our view of UMG’s medium and long-term growth prospects. We continue to believe that music has a long runway of future growth, as it remains under-monetized relative to history and when compared to other forms of media." — Bill Ackman (Trades, Portfolio), Pershing Square, Semiannual 2024 Q2 Fund Letter
Read full letter at gurufocus Bill Ackman's Pershing Square Semiannual 2024 Letter 2024 Q2 page.
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