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If you noticed a disturbance in the Force last night, that was the jubilance of thousands of teenage girls (and adults) celebrating the announcement of Taylor Swift’s newest album: The Life of a Showgirl.
The FBI trainees Swifties have long suspected the star was gearing up for a big announcement, and their sleuthing proved correct when Swift announced the album on her boyfriend Travis Kelce’s podcast, New Heights. But the Swifties aren’t just an unavoidable presence on the internet—they’re becoming a powerful force in the economy, too.
Just look at “The Eras Tour”, which generated a staggering $2 billion in ticket sales during the course of its year-plus run. The new album is expected to be another lucrative endeavor: Traders on prediction market Kalshi foresee a 53% chance that Swift’s album stays #1 for at least 10 weeks straight.
So, how can investors get in on the action? Turns out, there are a number of stocks that could benefit from Swift-induced mania.
For one, the record company producing Swift’s music, Universal Music Group, will get a share of the revenue from the new songs, Morningstar analysts pointed out. Swift’s music alone brings in between $40 million and $80 million annually for the company, according to Wolfe Research data cited by Barron’s. The stock rose 1.11% today.
Don’t forget that all those Swifties will be streaming music from streaming service Spotify, where Swift is the most-streamed artist ever, with over 106 billion streams. If she tours this album, ticket seller Live Nation Entertainment could get a boost as well as Swifties shell out big money to see their bestie live.
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But the power of Swifties goes further than just buying albums and pushing stocks higher. Analysts even coined a term for the impact “The Eras Tour” had on the cities it visited: Swiftnomics.
The US Travel Association estimated that the total economic impact of the tour, including travel, hotel stays, and other indirect spending, likely surpassed $10 billion.
The lucrative tour enabled Swift to make a bold business move in May: buying back her entire masters collection from private equity firm Shamrock Capital for roughly $360 million.
Clearly T. Swizzle is interested in investing—maybe it's time for her to subscribe to this newsletter and become a financial whiz herself.—LB