Spotify is a Swedish company that began providing online music and media streaming services in 2006. With over 433 million active users every month, it is one of the most popular music streaming services available.
More than 82 million songs are available to stream on Spotify, along with podcasts and digital recordings of music that are protected by copyright. A premium subscription grants access to extra capabilities, such as offline listening and listening without commercials, in contrast to the free basic features, which are supported by advertisements and offer only limited control.
American depositary receipts represent Spotify’s listing on the New York Stock Exchange, where the company’s stocks are traded. On the NYSE, it is listed under the ticker symbol “SPOT.”
What Is Spotify (SPOT)?
You can listen to millions of songs spanning a wide range of musical styles and performers, including obscure indie rock, top 40 pop, movie soundtracks, and classical music. There are also millions more songs available for purchase.
In addition, it provides curated playlists and internet radio stations, as well as a sophisticated algorithm that selects music for you to listen to based on your previous listening habits.
The best part is that you won’t have to pay anything to make use of Spotify. The service offers a premium subscription plan, but in addition to that, there is a version of the platform that you can use for free that is financed by advertisements.
Be aware that the audio quality of the paid and subscription versions of the service will suffer slightly while using the online player rather than the Spotify app. This applies to both the paid and free versions of the service.
On the web player, Spotify Free will only be able to reach a maximum of 128kbit/s, whereas Spotify Premium will be able to reach 256kbit/s.
When you listen to more music, the experience will become increasingly tailored to your preferences. As soon as you’ve used Spotify for some time, you’ll have a section called “Recently played”, which will contain all of the songs and playlists that you enjoy listening to regularly.
You’ll also have a section called “Based on your recent listening,” which will contain recommendations, and a section called “Your heavy rotation,” which will contain the songs that you play the most.
Spotify (SPOT) Stock Short Analysis
Spotify’s stock is currently being traded on the NYSE as SPOT. The bulk of Spotify’s shares, approximately 55-57% of the company’s total shares outstanding, are held by institutional investors.
Every three months, a 13F form needs to be submitted by investment managers that have a minimum of $100 million in assets under management (AUM).
(Spotify (SPOT) stock price graph. Source: TradingView)
If an individual or group purchases more than five percent of a company’s shares, they are required to file a Form 13D or, in some circumstances, the more straightforward Form 13G within ten days of the transaction. Any individual or entity that invests money and submits one of these forms is considered an institutional investor.
Two of the biggest shareholders of Spotify (SPOT) are two individuals. These individuals are the two co-owners and CEOs of Spotify, Daniel Ek and Martin Lorentzon. Daniel Ek owns around 18.2% of Spotify’s stock shares. On the other hand, Martin owns around 11.8% of shares in Spotify’s stock.
The Top Spotify Stock Shareholders
Other than the two co-owners that we mentioned before, there are also some other major shareholders in Spotify’s stock. Some of those shareholders we will be mentioning now. Names including:
Baillie Gifford & Co.
According to the company’s 13F filing for the period ending September 30, 2020, Baillie Gifford owns 11.3% of the total shares of Spotify.
The investment management company known as Baillie Gifford oversees more than $370 billion in assets under management (AUM) across a wide variety of asset classes. The organization is responsible for the management of a varied selection of mutual funds.
Morgan Stanley
According to the 13F filing that Spotify has made for the period ending September 30, 2020, Morgan Stanley owns 9.5% of the total number of shares in the company.
Morgan Stanley is a multinational investment bank and financial services corporation, and it manages around 715 billion dollars in assets under management (AUM).
Tencent Holdings Ltd.
According to the 13G filing that Spotify has submitted for the period ending December 31, 2019, Tencent Holdings has ownership of 8.8% of the total number of shares in Spotify.
Tencent is a worldwide technological holding corporation with its headquarters in China. Its subsidiaries offer a variety of services, including social networking, e-commerce, mobile games, Internet services, payment systems, and entertainment, among other things.
Spotify (SPOT) Stock Price Prediction 2022
In recent years, SPOT has had a high rise in price during 2021 and lost its worth again back in 2022. To dig deeper into this, we will look at the prices during the years 2018-2022.
During 2019, SPOT has had an average price of $140–150, with the highest price being around $154. The average price and the highest price have fallen from what we saw in 2018 when SPOT almost reached a price of $200.
The highest was somewhere around $193.75 and some change, but other than that, during 2019, the price fell back to an average of $140. However, this changes back in 2020 when the Spotify SPOT price reaches and passes not just $200 during the summer but also $300 at the end of the year in December.
On the 11th of December, SPOT hits $341.22 as its highest price in 2020. This trend then gets carried on to 2021 when it reaches a peak of $364.59 in February. After that, the price of SPOT slowly decreases with some peaks here and there. The last peak in price it had was in November, with a price of $298.20.
After 2021, the trend of the price going down continues, and Spotify’s SPOT rapidly decreases in price and eventually goes below $100. The first time it goes under $100 in years is on the 10th of May with a price of $99.17.
The lowest SPOT hit in 2022 so far is in June with a price of $97.96. However, the price of SPOT is slowly increasing again, and as of now, on the 12th of August, it stands at $123.63. With this information in mind, we can close, but not accurately, predict the price of SPOT for the rest of the year.
Spotify (SPOT) Price Prediction for September 2022
During September, we expect the price to gradually go up to around $140 and gradually go down to around $115 again. Making the average price during September $126.40. The least possible price, according to us, is around $106.16, and the best possible price is around $146.85.
Spotify (SPOT) Price Prediction for October 2022
At the end of October, we expect the price to rise to around $151.50 after keeping a steady average of $134.27 since the beginning of the month, when its price stood at around $118.30. We expect the lowest possible price to be around $99.76 and the best possible price to be $175.15.
Spotify (SPOT) Price Prediction for November 2022
In November, we expect the price to have already risen and stay at a steady price of $146.68 throughout the whole month. The least possible price during this month could be around $120.46, according to us, and the best possible price is around $179.08.
Spotify (SPOT) Price Prediction for December 2022
Based on our Spotify price prediction, during December, the price of SPOT may remain somewhat the same as in November but may also rise up to an average of $156.78. We have seen this trend happen a lot in recent years where the price of SPOT rises at the end of the month, so that is what we expect.
The least possible price this month could be around $122.34, and the best possible price could go higher than $200, maybe even $207.78.
Spotify (SPOT) Price Prediction From 2023 to 2025
After analyzing the market price of SPOT from the years 2018 to 2022, mainly analyzing the future prices of SPOT is mainly just predictions and forecasting, meaning it is not 100% correct.
According to our predictions, the price of SPOT might maintain the same level as it has for the last few years until 2025. It may hit the best possible price of over $500, passing a milestone, but the likeness is not that high and promising.
Many other forecasters, like GovCapital, predict that SPOT will reach an average and best possible price of over $700 or $800 during and after 2025. Although these are just predictions, we believe that it could take SPOT a little more time to achieve those milestones, let alone hold those prices on average.
In 2023, the price of SPOT could mimic its price during 2022 largely, but may hit the best possible price of over $300 again. Possibly somewhere around $357.86 as the best possible price and after will start to dip again into its average of around $140 – $180. The price may be volatile.
In 2024, the price of SPOT may go higher, as we have seen the trend of its price rising at the end of the year. Although it may have some dips in price during 2024, we believe that the price will gradually increase with some sharp major highs now and then.
If 2025,during 2023, possibly in 2024 SPOT will go higher than $400$400, will hit another milestone, making it more likely for SPOT to reach $500 by the end of 2024 or 2025.
In 2025, if the price of SPOT hasn’t already reached and/or passed $400, then we believe that it is very unlikely that SPOT will reach or pass $500 during this period. Although the average price of SPOT during 2025 may surely be higher than the former years.
Spotify (SPOT) Price Prediction From Until 2030
Because SPOT may reach $500 during 2023–2025, we believe that it is very likely for SPOT to keep going higher with some dips in price here and there and eventually hit or even pass $700 by 2030.
Since we have seen that the price of SPOT is a little unstable at times, it is hard to perfectly predict what could happen in the next decade, but we believe that if everything goes according to our predictions, such milestones are possible for SPOT.
Although many other forecasters believe that SPOT’s price will reach and even pass $1000, some even $1100, we believe that that is very unlikely to happen considering the value of Spotify and SPOT at the moment and its competitors.
SPOT has greatly increased in price since it started being traded on NYSE, and its price may also greatly increase in the future as well. According to us this number could remain sort of stable and may not increase in very high amounts but a steady form.
How To Buy Spotify (SPOT) Stocks
After all that learning about SPOT and our predictions on its price, it is only normal for anyone to be interested in investing. Well, for those who are interested, it is very simple to invest in SPOT and we will explain it in just a few steps.
As opposed to before, buying stock is way simpler due to the fact that you can invest online and don’t have to physically invest in a corporate. The same goes with Spotify (SPOT), in which you can invest online as well.
Step 1 – Find a Trustworthy Online Broker
The number of exchanges to which an online broker has access is one of the criteria of such a broker. Simply put, some brokers do not have access to the NYSE, which prevents them from facilitating the purchase of Spotify shares by their customers. You will, without a doubt, require the services of a broker to participate in this trade.
The second crucial factor to consider when choosing a broker is whether or not it is a good fit for you. Some brokers will not let you open an account with them if you are a citizen of a particular country.
Some brokers will charge you a lot of money if you only want to purchase a few Spotify shares every once in a while, while other brokers may not charge you anything at all.
Step 2 – Open an Account
After you have chosen an online broker, the next step is to register for an account with them. This is very similar to a traditional bank account, and the process of opening one is typically completed entirely online.
When dealing with certain brokers, the process is as quick and easy as opening a new e-mail, whilst dealing with certain brokers requires a couple of days before they conduct a background check on you.
Step 3 – Deposit Money in Your Account
When you buy Spotify stocks, you will be required to pay cash. Before anything else can be done with this money, it has to be deposited with your broker. Most frequently, you can deposit money into your account through a bank transfer or by using your credit or debit card. Some brokers accept PayPal and other payment methods comparable to PayPal.
Step 4 – Purchase Your Shares & Keep an Eye on The Market And Your Position Regularly
You are in possession of the account, the cash, and the share goal. The very last thing you have to do is click the “purchase” button! You will need to commence the purchase of shares by logging into your online brokerage account, searching for Spotify shares, entering the number of shares you desire to purchase, and then clicking the buy button.
It is essential to keep an eye on your finances now more than ever. This essentially implies sticking to the investing strategy you devised. If you purchased a share of Spotify intending to keep it for a more extended period, you might decide to attend the annual meeting and take in all of the latest news and information regarding the firm.
Takeaways
- Spotify is a Swedish company that began providing online music and media streaming services in 2006.
- Be aware that the audio quality of the paid and subscription versions of the service will suffer slightly while using the online player rather than the Spotify app.
- The bulk of Spotify’s shares, approximately 55-57% of the company’s total shares outstanding, are held by institutional investors.
- Two of the biggest shareholders of Spotify (SPOT) are two individuals.
- In recent years, SPOT, has had a high rise in price during 2021 and lost its worth again back in 2022.
- The lowest SPOT hit in 2022 so far is in June with a price of $97.96.
- SPOT has greatly increased in price since it started being traded on NYSE, and its price may also greatly increase in the future as well.
- Different from before buying stock is way simpler due to the fact that you can invest online and don’t have to physically invest in a corporate.
