Spotify Trading forecasts and signals

The streaming music service Spotify is being acquired by the London–based startup Sonantic, which uses an artificial intelligence mechanism to create emotional depth of speech - algorithms transmit complex human emotions, including fear, sadness, joy and surprise. This deal will help Spotify expand its reach in the field of audio technology: open the doors not only to create more functionality on the platform itself, but also to other potential projects for business. According to analysts, the purpose of such an acquisition for Spotify is precisely to expand the functions of its own platform, since competition in the multimedia market is very high, and users need to be attracted by something new and unusual.The companies do not disclose the financial terms of the transaction. Sonantic had previously raised less than $3 million in funding from a group of investors. It is also unclear what was the reason for the acquisition, and whether it was due to the fact that the startup was looking for additional sources of funding.Spotify shares on the NYSE premarket on June 14 are growing by 1.92%, to $100.5 per ...

The market the day beforeThe trading session on June 8 on American stock exchanges ended with a decline in the main indices. The S&P 500 dropped 1.08% to 4,116 points, the Nasdaq lost 0.73%, and the Dow Jones adjusted 0.81%. Most sectors closed in the red zone. The real estate sector (-2.40%) and raw materials companies (-2.08%) showed a noticeable drop. Issuers from the energy industry showed positive dynamics (+0.22%) due to the growth of oil quotes.Company newsDuring the investor Day, the CEO of Spotify (SPOT: +6.03%) stated that the podcast segment could potentially generate an annual profit margin of 40-50%. The audiobook direction is expected to provide 40% marginality.Caterpillar (CAT: +1.19%) raised its quarterly dividend by 8% to $1.20 per share. The forward yield will be 2.09% per annum.General Motors (GM: -1.77%) will begin production of the Chevrolet Tracker SUV in Argentina next month.We expectThe pressure in the logistics chains is gradually decreasing against the background of unloading ports in Shanghai and reducing delays in deliveries. Some experts note that transport activity has recovered to 80% of the level that was observed before the introduction of quarantine. Analysts surveyed by Bloomberg expect that freight traffic can normalize within two weeks. Amid the easing of quarantine restrictions in China, investor sentiment towards emerging markets is noticeably improving. At the same time, on June 8, oil quotes rose by 2.50%, approaching the recently reached highs, as market participants expect that the revival of economic activity in China will ensure high demand for black gold this year.However, the rise in hydrocarbon prices in the context of the energy crisis, coupled with the negative impact of geopolitical tensions, continue to provoke an acceleration of inflation in the world. Taking into account these factors, the World Bank (WB) has presented an updated forecast for the expansion of the global economy in 2022, lowering the expected pace to 2.9% compared with the January estimate of 4.1%. This implies a slowdown in global GDP growth by half after the 5.7% achieved in 2021. It is predicted that the peak of inflation will occur in the middle of this year, but price pressure will remain high. The World Bank also revised the forecast of GDP growth in the United States for the current year: the estimate was lowered by 1.2 percentage points (pp), to 2.5%, after 5.7% last year. The same indicator for China was adjusted down by 0.8 percentage points, to 4.3%, after an increase of 8.1% in 2021. The forecast of the indicator for the eurozone worsened by 1.7 percentage points, to 2.5%, against 5.4% a year earlier.The indices of the stock exchanges of the Asia-Pacific region in the trading session on June 8 showed weak dynamics. Japan's Nikkei gained 0.04%, Hong Kong's Hang Seng dropped 0.81%, China's CSI 300 lost 1.05%. EuroStoxx 50 has been adjusted by 0.25% since the opening of trading.The price of Brent crude oil futures rose to $123 per barrel. Gold is trading at $1,851 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4070-4140 points.MacrostatisticsNo significant macro statistics are expected to be published today.Sentiment IndexThe sentiment index rose one point to 40.Technical pictureThe S&P 500 was unable to continue the rebound and is still trading in the range of 4070-4150 points. The RSI remains near the neutral level, and the MACD indicates a weakening of the bullish momentum. We will probably continue to see consolidation in the market ahead of the Fed meeting next week. The nearest support is located at the level of 4060 ...

Streaming music service Spotify expects to reach revenue of $100 billion per year in the next 10 years and promises high-margin profits from expansion into the podcast and audiobook market. The company made such statements as part of its first investor day after going public in 2018.To achieve its ambitious goal, Spotify needs its revenue to grow almost 10–fold from revenue of $11.4 billion in 2021, and chief executive Daniel Ek also predicts that gross margin should jump to 40% and operating margin to 20% in the same time.The company's plans to achieve profitability of 40-50% look very ambitious, and it is still unclear how management will fulfill them, especially given the intense competition among streaming services in the world (Spotify's main competitors in the global market are services such as Apple Music, AmazonMusic Unlimited, YouTube Music, not to mention local analogues).At the end of the day, the company's shares rose by 6.03% to $116.03 per paper. Such a strong growth in shares is not surprising, considering that since the beginning of the year, the shares of the Swedish company Spotify Technology on the New York Stock Exchange have fallen by 55%. Over the past month, however, they have increased by 23%, but most likely, the growth is due to the fact that in early May Daniel Eck announced that he intends to buy shares of the company on the stock exchange to support the growth of its quotations. Analysts recommend that those who are going to buy shares pay attention to the strong volatility of the company's quotes and the rather high risks of its ...

Streaming service Spotify (SPOT), which allows you to legally listen to music, audiobooks and podcasts without downloading, has published a financial report for the 1st quarter of 2022:revenue was forecast at €2.62 billion, but actually amounted to €2.66 billion: 24% more than in the first quarter of last year;advertising revenue increased by 31% and reached €282 million;profit of €0.21 per share, despite the fact that the forecast was negative: -€0.25;the average revenue per user within the premium subscription increased by 6% and amounted to €4.38, this is due to the increase in prices last year, as well as the expansion of the range of the site;the number of paid Spotify subscribers increased by 15% compared to the same period in 2021: up to 183 million people.The reaction to the good financial report was not long in coming - the shares soared by 6.2% during the trading session, from €96.8 to €102.77.At the same time, Spotify has big plans: in the second quarter, it plans to earn €2.8 billion and increase the audience of paid subscribers to 187 million people.Spotify's departure from Russia almost didn't noticeDue to difficult geopolitical conditions, Spotify has completely shut down services in Russia since April 11. However, 1.5 million paid subscribers were lost even before the complete shutdown: in March, the subscription could not be renewed, although it was still possible to use it. In April, most likely, the company lost up to 600 thousand more users.Officially, Spotify started working in Russia relatively recently - in the summer of 2020. Thus, the service did not last in the Russian Federation for two years, and the loss of the Russian market certainly will not be a serious blow to the ...

The market the day beforeOn February 3, trading on American stock exchanges ended in the red zone. The S&P 500 fell by 2.44% to 4477 points, the Dow Jones fell by 1.45%, the Nasdaq lost 3.74%. Almost all sectors included in the broad market index closed in the red. The most noticeable drop was demonstrated by telecoms (-6.83%), the cyclical consumer goods sector (-3.57%) and IT companies (-3.07%).Company newsT-Mobile US (TMUS: +10.2%) presented optimistic forecasts for the number of subscribers for 2022, exceeding analysts' estimates.Meta Platforms quarterly reporting (FB: -26.4%) turned out to be weak. Management stressed the increased competition and pressure due to the change in Apple's privacy policy.Spotify quotes (SPOT: -16.8%) fell after uncertain forecasts of subscriber base dynamics and revenue for the first quarter of 2022.ExpectationsToday, investors are waiting for the release of the report on employment in the non-agricultural sector for January. According to the consensus, 170 thousand new jobs will be created, which is the lowest value since the net decline in December 2020. A number of economists give even weaker forecasts due to the negative impact of the omicron strain on the labor market. However, this decline is seen as temporary, and some experts point to the strong December report on the number of open vacancies published earlier this week. Unemployment is expected to remain at the same level of 3.9%. Analysts also believe that today's report will have only a limited impact on the Fed's actions, since most FOMC participants agree that current labor market conditions correspond to maximum employment, and further decisions of the regulator are now determined only by the dynamics of inflation.The results of the current reporting season look less impressive compared to previous quarters, although most issuers from the S&P 500 list still exceed analysts' earnings expectations. Although companies emphasize the high demand for their goods and services, however, many reports note the risks associated with the continuation of logistical problems and the rise in the cost of raw materials for at least the next few months, and give weak forecasts for 2022, which cools the enthusiasm of investors.The Tokyo Stock Exchange closed the session on February 4 with a 0.73% rise in the Nikkei index. Auctions in China are not held due to the national holiday. The index of the Australian stock Exchange ASX rose by 0.60%. EuroStoxx 50 has been losing 0.14% since the opening of trading.Brent crude futures are trading at $91.11 per barrel. The price of gold is $1803 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4470-4520 points.MacrostatisticsJanuary data from the US Bureau of Labor Statistics on the number of new jobs outside agriculture (consensus: 170 thousand after 199 thousand in December) and the unemployment rate (consensus: 3.9% after 3.9% in December) will be published today.Technical pictureThe S&P 500 is declining to the level of the 200-day moving average, in the area of which the nearest support for the broad market index is located. The RSI drops below the neutral value. The MACD indicator indicates a short-term recovery of the bulls' positions, but does not confirm a trend ...

The market the day beforeOn January 5, the main American stock indexes ended trading in the red zone. The S&P 500 dropped 1.94% to 4,700 points, the Dow Jones lost 1.07%, and the Nasdaq fell 3.34%. All sectors included in the S&P 500 closed in the red. The leaders of the fall were the real estate industry (-3.22%) and technology companies (-3.13%). Representatives of the non-cyclical consumer goods industry looked better than the market (-0.03%).Company newsSenseonics Holdings (SENS: +5.2%) expects to receive FDA approval for its Eversense glucose monitoring system in the coming weeks.WarnerMedia and ViacomCBS Inc (VIAC: -1.0%) are exploring the possibility of selling a significant stake in the CW Network.SMART Global Holdings (SGH: -15.4%) announced a 2-to-1 split of shares.We expectAs follows from the minutes of the Fed's December meeting published on the eve, the regulator is set to raise the rate in March. Members of the Open Market Committee (FOMC) believe that inflation will slow down as supply chain problems are resolved. It is noted that it is inappropriate to maintain the current pace of asset repurchase, taking into account the improvement of the situation on the labor market. The Federal Reserve confirmed plans from January to begin reducing the volume of purchases of US government bonds to $ 40 billion, and mortgage bonds to $20 billion. Thus, the buyback program will be completed in March. The dot chart of forecasts indicates that 10 of the 18 FOMC members are in favor of three rate hikes this year.The yield of two-year and ten-year Treasury bonds after the publication of the Fed's "minutes" increased by 9 bps, to 0.83%, and by 3 bps, to 1.71%, respectively. The active growth of government bond yields will continue to put pressure on the stock market in the upcoming trading session.Most of the sites in Southeast Asia ended trading on January 6 in the red zone. China's CSI 300 declined by 1.02%, Japan's Nikkei 225 fell by 2.88% and only Hong Kong's Hang Seng rose by 0.63%. EuroStoxx 50 has been falling by 1.20% since the opening of the session.Brent futures are quoted at $80.8 per barrel. Gold is trading at $1824.6 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4670-4720 points.MacrostatisticsWeekly data on the number of initial applications for unemployment benefits will be published today (consensus: 197 thousand after 198 thousand a week earlier).Technical pictureThe S&P 500 changed its direction of movement, rushing to the lower border of the ascending channel. The nearest resistance for the index is still near the 50-day moving average. The RSI is moving towards 50 points, which, together with the ambiguity of the MACD indicator, signals a high probability of a sideways move.In sightThe results for the first quarter of the fiscal year 2022 will be published this Thursday by the pharmacy chain Walgreens Boots Alliance (WBA). The forecast assumes a 10.7% increase in non-GAAP EPS to $1.35, with a 10% decrease in sales to $32.67 billion. Revenue in the international pharmaceutical segment is expected to remain at the level of the last quarter, and in the United States will decrease slightly due to a reduction in retail sales due to the autumn surge in COVID-19 incidence. Vaccination against COVID-19 and testing for this disease, which are carried out in Walgreens pharmacies, remain positive drivers for the issuer's financial performance. Investors will pay special attention to data on the volume of sales of goods online in the United States with delivery on the day of the order, as well as the development of omnichannel sales. In the international segment, the growth rates of the online retailer are of the greatest interest Boots.com and expansion in the cosmetics sector in the ...

The online trading platform Shotify and TikTok are launching a joint project that will allow users to make purchases directly through the video service after viewing ads. Previously, TikTok relied on the visualization of advertising information. Popular accounts rarely place direct advertising in the video series. To do this, use URL links and UTM tags in the account description. The so-called partner materials unobtrusively tell about goods and services. And this is a free way to promote the product. You can run direct advertising on a paid basis. It is possible to do a long-term (compared to the standard TikTok video) paid integration. Popular bloggers are usually invited to do this. Such integrations, hosted on the TikTok for Business platform, are available mainly to large companies, such as eBay, Zalora, Kia, Maybelline and Puma.The uniqueness of cooperation with Shopify is that the creation of an advertising message in TikTok will take only a few minutes. This will greatly simplify the creation of advertising content and make it accessible to small companies. The service is ready to provide a loan in the amount of $300 to launch the first advertising campaign.The project looks extremely promising for the Canadian Shopify. The agreement with one of the leaders of Big Tech will allow the company's quotes to update the historical maximum of $1,650 per share in the near future. For TikTok, interaction with a Canadian company is another opportunity to solve the problem of relatively weak content monetization. The parent company for the ByteDance video service, in case of successful implementation of the joint project, will be able to receive a much higher market assessment when entering the IPO in late 2021-early ...

Spotify shares are trading 20% below their highs. This happened for a reason – a slowdown in the growth rate of MAU (Monthly Active Users). At the end of the first quarter, the indicator increased by 24% YoY, to 356 million. However, compared to the previous quarter (the last three months of 2020), this number increased by only 3%. This dynamic forced the management to revise the forecast for the growth of users for the whole of 2021. If earlier the company expected the growth of MAU by 407-427 million, now by 402-422 million.During the same period, revenue increased by 16% YoY, to 2.15 billion euros. For comparison, in the previous two reporting periods, the growth was 17% and 14%, respectively.Back to MAU. The company notes that the results were worse than expected in Latin America and Europe, while the” significant " contribution was made by the United States, Mexico, Russia and India. As you know, American customers bring in more revenue than others. Management's words about good results in the United States add to the optimism and allow us not to worry so much about future revenue.About 90% of the revenue is accounted for by “premium". The number of users who signed up for this subscription increased by 21%. Spotify has started to raise prices in key markets since the beginning of the year: the United States, the United Kingdom and Brazil. According to the company, this step did not lead to an additional outflow of users. Moreover, the outflow decreased slightly due to the expansion of the number of possible subscriptions (family plan, ...

Spotify shares are trading 6% below the marks of the beginning of 2021, despite the revival after the release of the financial report for the third quarter. The growth potential of the securities remains against the background of the expansion of the product line and aggressive expansion.Recently, the company added a new subscription option - "Spotify Plus" for $0.99 per month. This is the most budget option available: listeners can rewind as many tracks as they want per hour (unlike the free version), but still have to listen to ads. In addition, the Spotify Audience Network service has been added to the platform, allowing advertisers to better target podcast listeners, which are the most dynamically developing segment of the business.Earlier, Spotify increased the subscription price in the UK and Brazil, but no serious deviation of the outflow of customers from the usual pace was noticed. This indicates the convenience of the platform: subscribers are willing to pay more and continue using the service. At the end of 2020, Spotify launched in South Korea— the sixth largest music market in the world, and also offered exclusive budget plans for India and Indonesia.More and more advertisers are coming to the platform, the focus is shifting to podcasts, which are easier to monetize, and the number of users is steadily growing. All this has an extremely positive effect on margins and cash inflow. In the third quarter, revenue increased by 27% YoY, to 2.5 billion euros, and gross margin - by 200 basis points, to ...