Spotify

Spotify (#SPOTIFY) weekly uptrend opportunity based On 1.00 Lot Calculation:

Spotify is the world's most popular audio streaming subscription service with a community of more than 380 million monthly active users and 170 million Premium Subscribers with a presence in nearly 185 markets, and more than 70 million tracks including 3.2 million podcast titles. Spotify has license agreements with record label affiliates of the three largest music companies, Universal Music Group, Sony Music Entertainment, and Warner Music Group, as well as Merlin, which represents the digital rights on behalf of hundreds of independent record labels. The US generates most of its revenue at more than 35%.

• EARNINGS RESULTS - Despite easily beating expectations on earnings and revenues (Revenues went up 24% and the number of active users jumped 18%). Spotify projected slower subscriber growth for this quarter than expected. With the report coming in the middle of controversy over Joe Rogan's podcast, the streaming company's shares fell by more than 10% in after-hours trading.

The controversial episode

The episode took place last December featuring Robert Malone, the guest was a virologist who was involved in the mRNA vaccine technology that led to some of the leading Covid-19 vaccines but has since been criticized for spreading vaccine misinformation.

• Musicians, including Neil Young and Joni Mitchell, asked for their music to be removed from the platform after criticism that the US broadcaster has helped to spread Covid misinformation.
• Prince Harry and Meghan Markle, who also have a deal with Spotify, have expressed their “concerns” regarding the issue.

Spotify and Joe Rogan reaction

• In a 10-minute Instagram video post Joe Rogan apologized and pledged more balance on his show amid a backlash against COVID-19 misinformation on the streaming service.
• Spotify said it would add a content advisory to any episode with discussion of COVID to try to quell the controversy, a first step into the field of content moderation that other tech platforms have found challenging and costly.
• PODCAST will be a $94.88 billion industry by 2028 according to Insider intelligence. The same source projects 424.2 million podcast listeners worldwide in 2022, accounting for 20.3% of internet users. Just in the US, in 2022, the number of monthly US podcast listeners will increase by 6.1% year-over-year (YoY) to 125 million. Spotify remains the most-subscribed streaming service, owning a 32% market share, which was twice as high as its closest competitors.
• Spotify strikes a podcast deal with Joe Rogan worth more than $100 Million. His full library, dating back 11 years, became exclusive to Spotify. Joe Rogan, comedian, television host and mixed martial arts commentator, has become one of the most influential and lucrative podcast hosts in recent years.
• PRICE ACTION: Since record high in February 2021($387.44) the share price fell to a current $159.76. Potential growth in order to reach a previous high is 143%.
• Morgan Stanley target is at $300, Barclays at $280 Citigroup raised the stock rating to "buy" from "neutral" with the target at $240 saying the Swedish company would be able to improve its advertising business.

Spotify, February 04, 2022
Current Price: 159.76

Example of calculation based on weekly trend direction for 1.00 Lot*

* 1.00 lot is equivalent of 1 000 units
** Calculations for exchange rate used as of 8:10 (GMT) 04/02/2022
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