Streaming audio services like Spotify (SPOT) deliver thousands of songs, audiobooks, and podcasts for you. A deal was struck late last year in which comedian, sportscaster, and podcast host Joe Rogan were given an exclusive opportunity to acquire the Ringer platform for $ 250 million.
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Due to these expectations, investors began to actively invest in the SPOT stock’s shares: investors began to realize the potential future earnings from podcasts and the future diversification of the business.
Subscribers to podcasts on Spotify (SPOT) new paid subscription program will not be charged a commission until 2023, and all money paid by listeners will go directly to content providers. After 2023, commissions will be increased to 5%. In addition, Apple’s App Store users will no longer be faced with such high fees. Therefore, Spotify has succeeded in providing the best possible partnership experience.
A recent announcement from Apple also announced a new podcasting service, though they did not abandon their 30% commission, promising it would go on sale for 15% at the end of the second year.
The problem is that Spotify will earn much less than expected from subscriptions. If your cheapest subscription costs you $2.99, the SPOT stock will only earn $0.15 per subscriber per month. Although a million subscribers might buy the most expensive option ($7.99), Spotify’s revenue will only grow by $400,000 per month at the most. Let’s not forget that this will only happen two years later.
At last check-in aftermarket trading, Spotify (SPOT) traded at $261.62, down -0.2% from the previous trading day’s close. Shares of Spotify Technology S.A. rose 2.07% on Thursday to close at $262.15. Over the last three months, the average trading volume of shares has been 1.75 million, but the volume traded this time was 3.33 million. The stock fluctuated between $260.00 and $265.88 during the trading session. The SPOT stock’s earnings per share ratio were -3.72.
Spotify (SPOT) lost -1.14% in the prior five sessions and has moved 1.73% in the past one month but have lost -16.69% on a year-to-date basis. Over the past 50 days, the stock’s moving average is $286.16, which is above the 200-day moving average of $283.99. Furthermore, the stock is currently trading at an RSI of 43.41.