Spotify (SPOT) - ★★★★
Ranked #17 in our Q3 2024 Large Cap Equity Rankings
Spotify Technology SA (SPOT) saw its stock price jump 12% to above $332 in early trading on Tuesday, following the release of its second-quarter earnings report and news of potential new premium offerings. The surge contributes to an impressive 74% year-to-date gain for the audio streaming giant.
The company's strong performance was buoyed by its recent price hike on premium streaming plans, which went into effect earlier this month. This strategic move helped Spotify post its second consecutive quarterly profit, a key milestone as the company aims for more consistent profitability.
The announcement of the potential new tier, combined with the company's improving financial performance, has sparked renewed investor interest. Our analysis on the company has use 12-month price target of $340 for Spotify stock.
As Spotify continues to evolve its business model and explore new revenue opportunities, the market will be watching closely to see if the company can maintain its momentum and deliver on its profitability goals. The potential launch of a high-fidelity tier could open up new growth avenues and further solidify Spotify's position as a leader in the competitive audio streaming landscape.
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