Shares of audio streaming giant Spotify Technology (SPOT) are up 2% and trading at an all-time high on news that Chinese social media platform TikTok is shutting down its music-streaming service.
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The end of TikTok’s music-streaming service removes competition for Spotify and is seen as a positive development for the Swedish company that specializes in music streaming and podcasts. SPOT stock is trading at $386 per share, which is an all-time high. So far in 2024, the company’s share price has more than doubled, rising 105%.
TikTok Music, which had been available in Indonesia, Brazil, Australia, Singapore, and Mexico, will officially shutdown on November 28 of this year, according to the company that is known for its wildly popular social-media app.
Big Growth at Spotify Technology
Spotify’s stock has surged this year as the company realigned its business and reported record profits. The company currently boasts more than 600 million monthly active users. Spotify has slashed costs this year through layoffs and by reducing its marketing budget.
At the same time, the company has tried to grow its user base through promotions and new podcasts. It has also raised prices, announcing in June that it was lifting prices for its monthly individual premium plan to $11.99 from $10.99, and increasing the price of its monthly family plan to $19.99 from $16.99 previously.
Is SPOT Stock a Buy or Sell?
Spotify stock currently has a consensus Moderate Buy rating among 30 Wall Street analysts. This rating is based on 23 Buy, six Hold and one Sell recommendations made in the last three months. The average price target on SPOT stock of $395 implies 2.32% upside from current levels.
