Spotify shares added 57.04% year to date, jumping around 4.25% in the past three months.
Spotify shares closed Wednesday’s market at $234.85, after shedding approximately 1.29% during the day. The shares continued with the downtrend during Thursday’s pre-market as they were 2.07% down in regards to yesterday’s closing value.
Since its inception back in 2008, the company has mainly been providing audio streaming platforms to its global customers.
As of July 2020, the company had 299 million monthly active users, besides the 138 million paying subscribers. This makes it a hub for music streaming with the capabilities of competing with other large-cap companies in the same field.
However, with Apple Inc. restructuring its mode of business operations to cope with the ongoing coronavirus market crisis, Spotify shares face a difficult time rallying ahead.
Spotify shares have performed impressively during the first half of the year when it experienced an uptick in active customer subscriptions.
According to the metrics provided by Marketwatch, Spotify shares added 57.04% year to date, jumping around 4.25% in the past three months through September 16. However, in the past one month, SPOT shares dropped 12.80%, and are now down approximately 5.22% in the past five days through Wednesday.
More Details about Spotify Shares
Putting Spotify shares under technical analysis radar, the weekly chart is indicating the bulls are stronger and perhaps accumulating more buyers in preparation for a new phase.
After breaking out of its multi-week consolidation, Spotify shares are certainly going to break above its current $273 resistance level with much ease.
However, the pullback might be extended due to the unfolding fundamentals that are putting the Spotify shares under more sell pressure.
With a $43.87 billion market cap as of the time of publication, the company is well set to face its competitors in the near future.
Apple announced Apple One subscription service on September 15. The new services is seen as the easiest way to get all of Apple’s subscription services in one simple plan, including Apple Music, Apple TV+, Apple Arcade, Apple News+, Apple Fitness+, and iCloud.
“Apple One makes enjoying Apple subscription services easier than ever, including Apple Music, Apple TV+, Apple Arcade, iCloud, and more,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “With Apple One, you can access the best of Apple entertainment across all your favorite devices with one simple subscription.”
Spotify will be left with little choice but upgrade its services to meet the market demand and also consider the stiff competition ahead.
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