Spotify Technology (SPOT) has shown a promising rebound in the stock market, being designated as the IBD Stock of the Day.
The stock has bounced off its 50-day moving average, indicating a potential shift in momentum. Spotify's stock closed at $457.79 on Thursday, with a 2.3% increase during the regular trading session.
Analysts are optimistic about the company's performance and expect earnings of $2.07 per share on revenues of $4.25 billion in the fourth quarter. Spotify is projected to add approximately 7.9 million premium subscribers, bringing its total to 259.9 million worldwide. Wall Street analysts predict that Spotify will end 2024 with 664 million total monthly active users.
Analysts from Morgan Stanley and BofA Securities have labeled Spotify stock as a "top pick" for the future, with price targets of $550 and $515 respectively. Spotify's management is recognized for its commitment to financial discipline, which is crucial in the competitive streaming industry. The company's focus on efficiency gains and potential capital returns will solidify its market position.
Spotify is well-positioned to benefit from the increasing demand for music streaming services and is expected to enhance shareholder value in the coming years.