The Swedish audio streaming and media service provider has been showing positive vibes lately. Last Wednesday, Jessica Reif Ehrlich, an analyst from Bank of America Merrill Lynch, raised the stock’s price target from $357 to $428 while factoring in Spotify’s 12.1% five-day growth. Resulting in record highs on Friday with $354.60 per share on the New York Stock Exchange. It sat at up almost 200% from its 2020 low of $117.64. With this surge on Friday, Spotify’s value ballooned to $66.1 billion.
One of the bigger factors that gave Spotify a boost in stocks could be thanks to Joe Rogan. The company has expanded its audio streaming services to include the Joe Rogan Experience podcast. It was announced in May that the JRE would eventually become a Spotify exclusive by the end of the year. Since this news broke out, the company’s stock price has more than doubled. Committing to the podcasting industry will be estimated to propel its annual growth rate of 27.5% through 2027, along with 17.8% growth for music streaming, according to Grand View Research.
Other reasons why the company has been hitting the high notes could be due to some rumors of service price increases and Spotify’s commitment to improving profitability and profit margins. Furthermore, while the pandemic has hit the company’s advertising business, demand for its services saw a 29% increase in monthly active users. According to a MIDiA Research survey, since the midyear of 2020, Spotify has claimed a leading market share in podcasts for the first time. It attracted 42% of podcast listeners to its platform, with Apple Music following behind with 32%.
Overall, Spotify is believed to be well-positioned long term as it rises above goliaths in the entertainment industry, proving itself worthy of investors’ attention.