Spotify (SPOT) Shares Hover Near All-Time High
According to the Spotify (SPOT) chart:
The stock price has risen by over 150% since the start of 2024.
It has formed an ascending channel (marked in blue).
Growth accelerated in November, surpassing the $400 level and climbing to around $470.
The large bullish gap on 13 November followed the release of a Q3 earnings report, which fell short of expectations: earnings per share were 14% below forecast, and gross revenue was 1% lower than anticipated.
However, the market reacted enthusiastically to the companys plans to launch a Super-Premium tier, offering Hi-Fi music streaming and other innovations, including features related to video.
Spotify first announced its intention to introduce a higher-end Premium subscription with features like lossless, CD-quality audio several years ago, but licensing issues delayed the rollout.
According to TechCrunch, the new tier is expected to cost approximately $17$18 per month, about $5 more than the current Premium subscription. Investors appear optimistic about potential revenue growth, driving SPOT's stock price to a historic high of $470.
Technical Analysis of SPOT
Daily chart indicators suggest the stock might be overbought:
The RSI indicator is above 70.
The price is near the upper boundary of the ascending channel.
Meanwhile, TipRanks analysts forecast an average target price for SPOT at $477 over the next 12 months.
This suggests that while SPOT has experienced remarkable growth in 2024, its upward momentum may be nearing exhaustion.
Read more: https://fxopen.com/blog/en/oa-spotify-spot-shares-hover-near-all-time-high/
Text source: Forex Trading Blog
