Spotify hits all-time high on New York Stock Exchange
Stocks in Spotify hit a new all-time high on the New York Stock Exchange last week.
On Friday, January 8th, the streaming platform’s stock reached a high of $354.60, and eventually closed at $353.48, up 7% from the closing price the day before and up 12.2% for the week overall. At Friday’s high, Spotify’s value rose to roughly $66.1 billion.
Market data company Refinitiv says Spotify’s stock is valued way above what many analysts have assessed it to be worth. The median analyst price target lists the company’s stock at $299.46, which is significantly lower than Friday’s high price.
The reason for the increase isn’t fully known, but some analysts have speculated that it could be related to the Bank of America recently increasing its Spotify stock target price from $357-per-share to $428, while the streaming platform’s increased expansion into the world of podcasts may also have tempted investors.
Last year, it was revealed that Spotify is to offer artists and labels the chance to influence its recommendation algorithm in exchange for a ‘promotional royalty rate’.
In October last year, the UK government announced that through a new enquiry entitled Economics of Music Streaming, parliament would be investigating a number of core aspects of streaming, including what the business models of the streaming companies, how algorithms and playlists have shaped music consumption and what the long term economic impacts of streaming might be on the wider industry.