Why the SPOT Weekly
Options Trade was Executed?…..
Technology (NYSE:SPOT) shares gained nearly 3% premarket today after Wolfe
Research upgraded the company to Outperform from Peer perform with a price
target of $190.00.
change is based on several factors, including
potential for accelerated top-line growth,
- a steady
expansion of margins, and
likelihood of sustained positive revisions to Street estimates over the next 12
eying a more expensive subscription option likely to include high-fidelity
audio to drive more revenue and appease investors.
"Supremium," the new tier will be Spotify's most expensive plan and
likely offer a HiFi feature it first announced it was working on in 2021.
its current "Premium" tier, Spotify will offer subscribers expanded
access to audiobooks through a specific number of hours free per month or a
particular number of titles. There will be an option to purchase more.
The SPOT Weekly
Options Trade Explained.....
** OPTION TRADE: Buy SPOT JUL
14 2023 160.000 CALLS - price at last close was $3.80 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the SPOT Weekly Options (CALL) Trade on Wednesday, June 21, 2023, for $3.03.
Sold the SPOT Weekly Options contract on Wednesday, June 28, 2023,
for $5.20; a
potential profit of 72%.
Don’t miss out on further trades – become a
Technology SA is a digital music service offering music fans instant access to
a world of music. It operates through the Premium and Ad-Supported segments.
segment provides subscribers with unlimited online and offline high-quality
streaming access of music and podcasts on computers, tablets, and mobile
devices. Users can connect through speakers, receivers, televisions, cars, game
consoles, and smart watches. It also offers a music listening experience without
Ad-Supported segment provides users with limited on-demand online access of
music and unlimited online access of podcasts on their computers, tablets, and
compatible mobile devices. It also serves both a premium subscriber acquisition
channel and a robust option for users who are unable or unwilling to pay a
monthly subscription fee but still want to enjoy access to a wide variety of
high-quality audio content.
was founded by Daniel Ek and Martin Lorentzon in April 2006 and is
headquartered in Luxembourg.
Further Catalysts for the SPOT Weekly Options Trade…..
streaming platform Spotify Technology is planning to roll out a more premium
subscription option that is expected to include high-fidelity audio.
tier, called "Supremium" internally, will be the company's most
expensive plan and will launch this year in non-US markets first, according to
its current premium tier, Spotify will give subscribers expanded access to
audiobooks, either through a specific number of hours free per month or a
specific number of titles, Bloomberg reported.
plans to introduce that feature in the United States in October, after first
launching in markets abroad, the report added.
United States, the company's premium account for individuals is priced at $9.99
per month, while a family account with six users is at $15.99 a month.
which competes with rival services from Apple and Amazon.com, has been trying
to grow its number of paying subscribers by rolling out a range of
audio-focused services such as the HiFi feature, which upgrades the sound
quality of the songs to "lossless" CD-quality music.
appreciation has been driven by the company’s increasing user base and growing
number of subscribers. The company has grown significantly without spending
heavily on marketing owing to a healthy conversion rate.
music-streaming service operator is expected to post quarterly loss of $0.84
per share in its upcoming report, which represents a year-over-year change of
+7.7%. Revenues are expected to be $3.52 billion, up 15.3% from the year-ago
is key to driving consumption on music-streaming platforms. Without a powerful
recommendation engine, users will simply visit Spotify when they're looking for
a specific track or artist, as opposed to using the service as a way to
discover music they might like. In the first quarter of 2023 (ended March 31),
Spotify released its new artificial intelligence (AI) DJ called DJ X. It uses a
software-generated voice to offer a personalized experience for each user, and
it recommends songs based on users' listening habits and preferences on the
when a user engaged DJ X in Q1, it accounted for 25% of their listening time,
which is quite impressive given it's a brand-new feature.
also refreshed its home screen during the quarter to incorporate video, which
is an increasingly important form of media, especially for younger users.
515 million monthly active users at the end of Q1, up 22% year over year. Its
free ad-supported tier outperformed, growing by 26% to reach 317 million active
users, which isn't surprising in a challenging economic environment where
consumers are trying to save money. Overall, the results drove Spotify's
revenue to over $3 billion for the quarter, which was a 14% year-over-year
According to the issued ratings of 21 analysts in the last
year, the consensus rating for Spotify Technology stock is Moderate Buy based
on the current 7 hold ratings and 14 buy ratings for SPOT. The average
twelve-month price prediction for Spotify Technology is $144.38 with a high
price target of $180.00 and a low price target of $95.00.
Spotify dominates its industry. It's
the world's largest music-streaming and podcasting platform.
Despite a powerful 103% gain in
Spotify stock in 2023 so far, it remains down 56% from its all-time high. If
the company's new features -- both video and AI-powered -- lead to higher
engagement, that could be particularly lucrative for the ad-supported tier,
because the more time users spend in the app, the more ads they'll consume. If
that results in an uptick in revenue growth, Spotify stock should continue to
recover -- especially with the help of a new bull market.