Spotify Stock (SPOT) Is Surging — But Will the Momentum Keep Up Throughout 2024?

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Despite suffering an approximately 3% slip during early trading today, Spotify stock (NYSE: SPOT) is surging relative to its peer group and the broader market.

Spotify stock was worth $197.71 per share at the time of this writing – a figure that, besides marking the mentioned 3% decrease on the day, reflects a close to 5% increase from 2024’s beginning.

That boost is particularly noteworthy given SPOT’s strong performance during the past 12 months, which have brought with them a more than 115% valuation spike. According to Kwhen Finance, Spotify stock’s year-to-date showing “beats the peer average by 1112.3%,” and the stock’s growth during the latter 12 months tops the peer average by 177.1%.

Additionally, Spotify stock’s trading volume across the past week or so has outpaced the 20-day average by almost 30%, Kwhen specified.

Meanwhile, prior to the initially highlighted price dip, SPOT yesterday came within half a percent of its 52-week high value, $204.03. And notwithstanding this morning’s decline, Spotify’s current market cap is still above $38.5 billion; analysts reportedly anticipate an average of approximately 5% growth for SPOT during 2024.

Independent of overarching market conditions, logic suggests that SPOT’s trajectory throughout the remainder of 2024 will depend largely on the business’s ability to turn a profit.

With his company having laid off nearly one-fifth of its team last month (following other layoffs and cutbacks), CEO Daniel Ek has indicated that Spotify will “consistently” remain in the black moving forward. (The platform is expected to incur sizable once-off expenses due to the layoffs as well, however.)

This conservative operational approach dramatically contrasts the acquisition-heavy strategy that had in many ways defined Spotify for a number of years. As the pivot relates to the coming 11 months, it’ll be especially interesting to see whether the streaming giant renews its podcast deal with comedian Joe Rogan.

The namesake Joe Rogan Experience, as a central component of the service’s podcast ambitions, appeared to set in motion a major Spotify stock price surge. The program is also Spotify’s most popular podcast and, with guests including but certainly not limited to Elon Musk, Post Malone, Sam Altman, and Ice Cube, has in many ways taken on a life of its own, fueled by but independent of its host’s appeal.

On the other side of the coin – and bearing in mind its effort to rein in spending and make profitability the norm– Spotify reportedly paid a whopping $200 million to Rogan for the rights to the podcast and would presumably be compelled to fork over a similar sum to score a fresh tie-up.

As its search for a permanent CFO continues, Spotify is scheduled to post its Q4 2023 financials on Tuesday, February 6th.