Spotify share price set to trade higher, nears $50 billion market cap
The music streaming service has seen its share price double in value over the last three months, with the company on course to a $50 billion market cap after it looks to monetise podcasts and test in-app offers.
Spotify has seen its share price double in value over the last three months, with the company on course to a $50 billion market cap after it looks to monetise podcasts and test in-app offers.
Since the beginning of April, where the stock was trading at $121 a share, the music streaming service has seen its share price soar more than 98%, with the company closing at $241.76 on Tuesday.
Spotify exceeds Wall Street analysts expectations
Spotify’s meteoric rise has seen it exceed Wall Street’s expectations, with the 25 analysts offering 12-month price forecasts for the company having a median target of $165.85.
The music streaming service is already trading 31% above that median share price target and is closing in on the high estimate of $245.90 and looks likely to break above even this level in 2020.
However, last week analysts at Monness Crespi and Rosenblatt Securities upped their price target for Spotify to $275 per share – implying a potential upside of 13.7%.
Spotify’s soaring share price is great news for its shareholders, but is bad news for the wider music industry, with Universal Music Group owner Vivendi down 12% year-to-date and a market cap of €27 million ($30.4 billion), while Warner Music Group is trading at $31.35 per share with a market cap of $16 billion.
Joe Rogan podcast deal worth every penny
Since announcing back in May that the comedian Joe Rogan will migrate his popular podcast ‘The Joe Rogan Experience’ to Spotify’s platform from 1 September and become exclusive to the music streaming service later this year its share price has soared.
The multi-year deal, which will see The Joe Rogan Experience disappear from all other streaming platforms is reportedly valued at $100 million (£82 million).
‘It will remain free, and it will be the exact same show,' Rogan said in a statement. ‘It's just a licensing deal, so Spotify won't have any creative control over the show.’
‘They want me to just continue doing it the way I'm doing it right now,’ he added. ‘I'm excited to have the support of the largest audio platform in the world and I hope you folks are there when we make the switch!’
Spotify tests interactive ad format for podcasts
Another bit of news that is exciting investors is Spotify’s testing of a new interactive ad format for podcasts on its platform.
Instead of listeners having to remember a promo code mentioned within the podcast itself, Spotify’s new in-app feature will display offers that consumers can simply click on to redeem.
‘The average podcast listener has heard a countless number of ads ending with promo codes or show-specific websites, carefully repeated three times so as not to forget it,’ Joel Withrow, senior product manager of Podcast Monetisation at Spotify, said in a statement.
‘In-app offers makes it vastly simpler for listeners to redeem deals whenever they come back to the app, and we can all benefit from one fewer ‘w-w-w-dot’ spelling lesson from our favourite podcast creators.’
How to trade stocks with IG
- Create an IG trading account or log in to your existing account
- Enter ‘Spotify’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets