Spotify Stock Pulls Back After Hitting All-Time High Near $400 Mark
Spotify stock (NYSE: SPOT) has experienced a slight cooling after reaching a record high of nearly $400 per share, following TikTok Music's shutdown announcement.
Spotify stock price chart
Key Points About Spotify's Current Position:
- Current trading price: $369.20 per share (down 3% from open)
- Recent milestone: Nearly $400 per share (52-week high)
- Several analysts project SPOT to reach $500 per share
- Q3 2024 earnings release scheduled for Tuesday, November 12th (after market close)
Current Growth Factors:
- Reduced wasteful spending
- Increased focus on profitability
- Implementation of price increases
- Expansion into audiobooks and video content
Potential Concerns:
- Slowing user growth (despite Q2 subscriber numbers beating guidance)
- Monthly-user miss in Q2
- Historical precedent: Similar 2021 valuation followed by drop below IPO price
- Recent 17.9% reduction in holdings by Select Equity Group
Notable Changes from 2021:
- More streamlined operations
- Shift from growth-at-all-costs to profitability focus
- Diversified revenue streams through new content types
- More sustainable business model
The upcoming Q3 earnings report will be crucial, with particular attention on subscriber growth and profitability metrics. Currently, company insiders are in a trading blackout period until the first trading day after the earnings release.
Businessman checking phone with charts
Concert stage with colorful lights
Man presenting Spotify Now Playing feature
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