A New Taylor Swift Album Is Coming. That’s Music to These Stocks.

Taylor Swift performs in Amsterdam during her “Eras Tour.” (Carlos Alvarez/Getty Images for TAS Rights Management)

On Tuesday near midnight, Swifties—the name of Taylor Swift’s loyal fan base—scoured the internet for clues that the global superstar was about to announce a new album. They were right.

At 12:12 a.m. EDT, Swift posted news of her upcoming, 12th studio album, The Life of a Showgirl, on her website, which had displayed a countdown three hours earlier without further information.

In a clip of the podcast New Heights posted Tuesday on Instagram, Swift revealed the album’s blurred-out vinyl cover after opening a briefcase embellished with her initials in orange in the center, hinting at a new color theme.

The podcast is hosted by Swift’s boyfriend, Travis Kelce, a tight end for the Kansas City Chiefs football team, and his brother, retired Philadelphia Eagles player Jason Kelce. In a Monday post, their Instagram account had teased Swift as a guest for the next episode, which will air Wednesday.

Many companies stand to reap the benefits from new music by Swift. Universal Music Group , the record company behind Swift, will get a share of the streaming and publishing revenue, Morningstar analyst Matthew Dolgin says. But the company, which recently filed for a U.S. listing, could be limited in how much they make since Swift owns her master recordings.

Wolfe Research analysts led by Peter Supino estimate the company collects between $40 million to $80 million annually from Swift’s recorded music sales.

The Eras Tour became the highest-grossing tour of all time, racking up $2 billion in global ticket sales, the New York Times reported in December. The tour also swelled the U.S. economy, likely adding $10 billion, according to the U.S. Travel Association. The value includes ticket sales and spending on food, merchandising, travel, and other expenses related to the event even if some fans didn’t attend the shows.

The average ticket price for the Eras Tour in 2023 was about $1,100, according to CNBC. *“*If Swift tours, the shows will sell out at high prices because it’s a special occasion that lives outside of consumers’ budgets,” Supino told Barron’s.

Even for those fans who have cut back on discretionary spending, expect to see an uptick in purchases of Swift merchandise and recordings, says American University economics department chair Kara Reynolds. The vinyl, cassette, and CD with a poster—priced between $13 and $30—are already listed on Swift’s website.

Reynolds noted that even in a weaker economy, consumers purchase more feel-good products, citing lipstick as a historical example. “You might actually see something like ‘Yeah, I can’t afford that thousand dollar vacation, but I can afford this new Taylor Swift sweater,’” Reynolds told Barron’s.

A potential tour could bolster various revenue streams through Live Nation Entertainment’s Ticketmaster, VIP packages, and online fees. While the Eras Tour may have uplifted the U.S. economy, Supino said the global event contributed less than 1% of Live Nation’s total 2023 revenue.

Swift has roughly 84 million listeners on Spotify Technology , where she has surpassed 100 billion streams. The streaming company reported in December that Swift’s catalog, including her most recent album, The Tortured Poets Department, generated over 26 billion streams in 2024.

Since Spotify’s premium revenue model includes unlimited streaming for all songs, Morningstar’s Dolgin said he doesn’t expect Swift’s album alone will boost Spotify’s pricing power or number of subscribers. The album could, however, catapult the company’s upcoming “Superfan Tier,” a more expensive premium offering for die-hard music fans with exclusive features such as early ticket access.

“It does make a lot of sense to me that she would be who you would want front and center if all of a sudden you’re trying to appeal to superfans,” he said.

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