American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Spotify stock price forms W pattern ahead of earnings: what next?

by admin April 28, 2025
April 28, 2025
Spotify stock price forms W pattern ahead of earnings: what next?

Spotify stock price has done well over time, and is nearing its all-time high as investors wait for its financial results on Tuesday. SPOT, the market leader in music streaming, jumped to a high of $620 on Friday, its highest level since February 20, and a few points below its all-time high of $652. This article explores whether the Spotify share price has more upside going forward.

Spotify to hike prices in key markets

The Spotify stock price jumped on Friday after the Financial Times reported that the company was considering raising prices for its subscriptions as it focuses on profitability. 

The paper noted that prices will rose by about $1 or 1 euro in international markets, excluding the United States, its biggest market. 

Spotify has already started hiking prices in countries like Luxembourg and the Netherlands. Most price increases will happen in the summer months. 

These price increases are in line with what most music executives have been calling in the past few years. They have argued that streaming companies like Spotify and Apple Music should do more to hike their prices. 

The argument is that these streaming solutions are still cheaper than companies like Netflix and MAX. Also, they argue that these companies’ prices increases have been slower than inflation. For example, Spotify launched in the US with a price of $9.9 in 2011, an amount that stands at $11.99. In this period, US inflation has jumped by over 43%.

Spotify is also considering creating a top tier in the US that will cost $6 extra of its most advanced tier.

The company hopes that these price increases will help it to boost its revenues and profits over time. Even a $1 dollar increase can lead to substantially higher numbers since it has over 252 million users globally. 

The company is betting that these price increases will not lead to subscriber losses. That’s because other companies like Tidal and Apple Music will react to these prices by rising theirs. Also, it is highly unlikely that many Spotify users will opt for other solutions since they see its services as being superior.

Read more: Why Spotify (SPOT) could be a safe bet in an economic slowdown

SPOT earnings ahead

The next important catalyst for the Spotify stock price is its upcoming corporate earnings scheduled on Tuesday. 

The most recent numbers showed that the company had over 675 million monthly active users, a 12% increase from the same period last year. Its premium subscribers jumped by 11% to 263 million.

These numbers pushed its quarterly subscription revenues up to €3.7 billion and its ad-supported figure to €537 million. This brought its total revenue up to €4.2 billion, and operation margin to 11.2%.

Wall Street analysts expect Spotify’s earnings to show that its sales rose by 15.5% in the quarter to €4.2 billion. Its guidance for the current quarter will be €4.37 billion, while the annual forecast will be €18 billion, a 15% annual increase. 

A key risk that could impact Spotify’s earnings is the euro, which has strengthened against the US dollar. A stronger greenback impacts its earnings, as it generates most of its revenue in the United States. 

Read more: Why Netflix may emerge as a trade war survivor

Spotify stock price technical analysis

SPOT stock chart by TradingView

The eight-hour chart shows that the SPOT share price has bounced back after bottoming at $484 earlier this month. It has risen to $620, its highest level since January.

Spotify stock price has formed a W chart pattern, commonly known as a double-bottom. This is a popular bullish reversal sign in technical analysis. It is now moving above the neckline at $625, the highest point on March 24.

The stock has moved above the 50-day moving average, a sign that bulls are in control. Therefore, the most likely scenario is where it rallies and hits its all-time high at $652 after earnings. 

The post Spotify stock price forms W pattern ahead of earnings: what next? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Deliveroo shares soar on takeover bid, but analysts say DoorDash offer falls short
next post
US, China, Germany drive Bitcoin reserves down to 463,741 BTC

Related Posts

Sam Altman accused by sister of sexual abuse,...

January 8, 2025

UK retailers warn of price hikes in 2025...

January 9, 2025

Honeywell and FedEx spinoff plans: can investors hope...

December 20, 2024

Could Zeta Global stock price surge 25% after...

November 11, 2024

Long RBLX: bullish breakout signals continued upside amid...

November 1, 2024

European markets open: Stoxx 600 turns lower amid...

June 3, 2025

Michael Burry loads up on Alibaba stock: should...

November 16, 2024

Tata Motors shares slide further, but analysts spot...

February 14, 2025

Southwest Airlines faces FAA audit over string of...

July 25, 2024

Apple lines up new iPhones, macbook, iPad for...

July 11, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

      July 20, 2025
    • US visa bans on Brazilian judges spark diplomatic rift, cloud economic ties

      July 20, 2025
    • Trump sues Murdoch and News Corp over Wall Street Journal’s Epstein report

      July 20, 2025
    • The new global demographic challenge: not too many, but too few

      July 20, 2025
    • Kraft Heinz plans breakup, weighs $20 billion grocery spin-off: report

      July 13, 2025

    Categories

    • Business (3,434)
    • Investing (2,634)
    • Latest News (2,021)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved