Spotify Stock Retreats From $400 Peak After Setting All-Time High
Spotify stock (NYSE: SPOT) experienced a slight cooling after reaching a record high of nearly $400 per share, following TikTok Music's shutdown announcement. The stock closed at $369.20, down 3% from open and approximately $20 below its 52-week high.
Spotify stock price chart
Key Factors Affecting Spotify's Stock Performance:
- Multiple analysts predict SPOT could reach $500 per share
- Some concerns exist about subscriber growth and content costs
- Similar value position occurred in 2021 before dropping below IPO price
Current Spotify Advantages vs. 2021:
- Reduced wasteful spending
- Increased focus on profitability
- Implementation of price increases
- Expansion into audiobooks and video content
Important Considerations:
- Q3 2024 earnings release scheduled for November 12th after market close
- Monthly-user miss in Q2 was overshadowed by strong subscriber numbers
- Insider trading blackout in effect until earnings release
- Select Equity Group recently reduced holdings by 17.9% to 141,000 shares
The upcoming Q3 earnings report will be crucial, as any miss in profit or subscriber growth could significantly impact the stock price. The after-hours earnings release timing mirrors Q3 2022, when the company missed guidance for margin and operating income.
Businessman checking phone with charts
Concert stage with colorful lights
Man presenting Spotify Now Playing feature
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