Falling and rising (Tik Tok and Spotify)

One Falls, Another Rises…

Yesterday we reported the downfall of Tik Tok Music, as Tik Tok plans to sunset the that component of its streaming service, Tik Tok Music. Our focus was on the consumer experience, as users were forced to start transferring playlists to other music streamers. However much of a downer that was for them, owners of Spotify stock must have been just as delighted. Investors were mindful that when one consumer service sinks, its competitors benefit, a principle illustrated by Spotify stock as it jolted upward:

 

…Although It Was Rising Anyway

Yes, Spotify’s stock was punched upward by the expiring Tik Tok Music. But a slightly longer story has transpired over 18 days, during which an inexorable upward trend took the stock from $322.27 (Friday, September 6) to $380.36 (Tuesday September 24). Podnews observes that Spotify revenue has been targeted to reach $2.1 billion this year.

 

September 25, 2024


Brad Hill