Spotify Stock Hits All-Time High as TikTok Music Announces Shutdown
Spotify's stock hit a record high following TikTok Music's shutdown announcement, reaching $386.96 per share before settling at $383.96, representing a market cap of $77.10 billion.
TikTok Music, launched in 2023, will cease operations in November. While the exact reasons remain unconfirmed, potential factors include licensing challenges, the TikTok-Universal Music dispute, and lower-than-expected user adoption. The service operated in key growth markets including Brazil, Indonesia, Singapore, Australia, and Mexico.
Multiple factors contribute to Spotify's current success beyond TikTok's exit:
- Expansion of AI tools
- Recent rate adjustments
- Strong analyst forecasts
- Improved financial discipline
- Commitment to profitability
- Potential price increases
- Audiobook expansion
- Planned video content integration
Businessman checking phone with charts
Spotify's strategic evolution now includes significant moves into video content, with reports indicating seven-figure deals being offered to video creators. The platform has already begun integrating TV episodes and comedy specials through a Cineverse partnership, marking a significant departure from its previous focus on audio-only content.
This current growth phase differs from Spotify's 2021 peak, when the company primarily invested in podcast acquisitions. The new strategy reflects a more diversified approach to content and revenue streams while maintaining profitability.
Man presenting Spotify Now Playing feature
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