SPOT April 3, 2024: Breaking into New HighOn April 3, 2024, NYSE:SPOT broke out into new high which provide an entry opportunity.
SPOT/N trade ideas
SPOT Don’t short this yet! Falling wedge into earnings right below monthly fib levels. Earning may push this higher where institutions may be looking to liquidate their warehouses.
SPOT Spotify Technology Options Ahead of EarningsIf you haven`t bought SPOT inside the Buy Area:
Then analyzing the options chain and the chart patterns of SPOT Spotify Technology prior to the earnings report this week,
I would consider purchasing the 220usd strike price in the money Calls with
an expiration date of 2024-4-19,
for a premium of approximately $18.90.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Spotify Shares Surge: As it Plans to Increase Premium PriceSpotify (NYSE: NYSE:SPOT ) has announced plans to raise prices for its premium subscription service in multiple markets, including the United States. The news sent Spotify shares soaring by 6% on Wednesday, following reports from Bloomberg.
According to sources familiar with the matter cited by Bloomberg, Spotify ( NYSE:SPOT ) intends to implement price hikes ranging from $1 to $2 per month in five key markets, including the United Kingdom, Australia, and Pakistan, by the end of April. The company will also introduce a new basic subscription tier priced at $11 per month, which will offer access to music and podcasts but exclude audiobooks.
The decision to raise prices comes as Spotify ( NYSE:SPOT ) aims to offset the costs associated with its audiobook service, which provides subscribers with 15 hours of audiobook listening time per month. By increasing subscription fees, Spotify ( NYSE:SPOT ) seeks to maintain profitability and sustain its growth trajectory amid intensifying competition in the streaming market.
Last year, Spotify ( NYSE:SPOT ) implemented similar price increases in various regions, including the United States, as part of its efforts to improve its financial performance. Despite facing fierce competition from rivals such as Apple, Amazon, and YouTube, Spotify has continued to expand its user base and enhance its offerings.
The introduction of a new basic subscription tier reflects Spotify's commitment to catering to diverse consumer preferences and enhancing the value proposition for its users. By providing a more affordable option for accessing music and podcasts, Spotify aims to attract a broader audience and drive subscriber growth.
While Spotify ( NYSE:SPOT ) declined to comment on Bloomberg's report, the company's actions underscore its determination to innovate and adapt to evolving market dynamics. As the streaming landscape evolves and consumer demand for digital entertainment services continues to grow, Spotify remains focused on delivering compelling experiences and driving long-term shareholder value.
The surge in Spotify's share price following the price hike announcement reflects investor optimism regarding the company's ability to monetize its platform and capitalize on emerging opportunities. With its innovative approach to content delivery and strong market position, Spotify is well-positioned to navigate challenges and sustain its growth momentum in the competitive streaming market.
Technical Outlook
Spotify ( NYSE:SPOT ) shares have exhibited consolidation near the $270 resistance level, indicating a gathering of supply. Following this period, the stock surged, encountering new resistance levels. This trend occurred in line with the announcement regarding Spotify's plans to increase payments for its premium subscription plan, suggesting anticipation and market reaction to forthcoming developments.
Spotify 20-29 Mar 24 TA/TC3/19/24
Price: 252.76
Analysis:
Trend Analysis:
Declining momentum, expecting bulls to fight to (+0.4%) - (+0.6%), expecting incline to continue to +2.3% thereafter, may see stagflation after... expecting total deviation of 3.1% TP @262.65 followed by +0.8% inclined TP @262.65 before significant decline.
Structure:
Market Stagnated bears look to be in favor for decline continuation for now release suggest @least +2.3% inclined followed by +0.8% inclined TP @262.65 market structure may allow bulls to steal for the projected incline.
Support & Resistance Levels:
Highs 254.79, 260.59, 262.64, 262.84
Lows = 250.68, 244.95, 240.74
Crossovers & Moving Averages:
Risk Management:
0.5% & 0.2%
News & Events:
Scenario Analysis:
Market incline +2.3%, then decline (-2.3%) create double top then shoot inclined expect +4.00% tp to be cut short @ (0.6%) - (0.8%), turned bearish to drop (-4.6%)
Market incline +0.6%, turned bearish drop (-0.6%) - (-0.8%) tp @round 252.2, then turn bullish incline (+1.7 - (+2.2%) tp@ +2.3% (260.59) or 260.1. then market drop (-4.00% = 250.68) or @250.17
Objective & Targets
wait for confirmation to push incline Target = 0.8% - 2.3%
Continue pushing decline (-0.6%) - (-0.8%), expect bullish push after by at least 1.3% inclined tp@ +2.3% (260.59)
YOLO:
Entry Point: 253.75 / 251.75
SPOT.NYSE Spotify -11% Correction Expected.Spotify -11% Correction Expected as shown on the Chart.
Not bad after a +100% Run.
Use to set your stop loss as desired.
I'm not going to give a Long or Short position, as if you got in early - will be in comfortable Profit.
As always, please get a few outside Expert's Advice before taking Trade or Investment decisions.
Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away.
Regards Graham.
(Spotify = BUY) - $EIIV 2 Daii Tracker 15-16 Feb 24 Expect Market to continue Inclined momentum Raise by 5.12%. due to CPI inefficiency to be lowered, added with Euro Area securities barely making the cut but acceptable, market expected to continue incline.
* Volatility Yet to be Bullish closing @ 0.21%. Expect to try to decline but will reject & eventually overturned by Bulls Volatility bullish outbreak @ 0.25% / -3.5
Tp1 = 243.8
TP2 =247.2
TP3 =251.71
TP4=253.53
Expecting to Go bull 40% area, altogether throwing possible buy signal @ 3.5% = mid/high buy (breakout), -3.5% = Lower low
Market meet conditions to continue momentum upward due to minimum resistance to downside, Momentum ending @ 0.50% bullish over our 0.3% requirements, and price breakthrough TP1 ending the day bullish
Spotify's Growth Story: Breaking Records and Setting Bold GoalsSpotify (NYSE: NYSE:SPOT ) has emerged as a juggernaut, continually breaking barriers and setting new standards. The latest report from the Swedish music streaming giant reveals an impressive surge in user growth, defying expectations and propelling its stock to new heights.
Unveiling Remarkable Performance:
Spotify's (NYSE: NYSE:SPOT ) fourth-quarter results have left analysts and investors astounded. The company not only surpassed forecasts but also demonstrated resilience in the face of challenges, with its monthly active users and premium subscribers soaring to unprecedented levels. Despite a slight revenue miss, Spotify's strategic maneuvers, including price adjustments and podcast investments, have positioned it for a prosperous future.
Diversification and Expansion:
Beyond music, Spotify's (NYSE: NYSE:SPOT ) foray into podcasts and audiobooks underscores its commitment to diversification and innovation. With an eye on capturing the burgeoning audio entertainment market, the company has strategically aligned itself with influential hosts and witnessed exponential growth in podcast advertising. This strategic pivot not only enhances user engagement but also opens new revenue streams, reinforcing Spotify's position as a multifaceted entertainment platform.
CEO's Vision and Strategic Imperatives:
Under the stewardship of CEO Daniel Ek, Spotify's (NYSE: NYSE:SPOT ) vision of reaching 1 billion users by 2030 is not merely a lofty ambition but a strategic imperative driving every decision. Ek's emphasis on profitability, evidenced by recent cost-cutting measures and operational efficiencies, reflects a maturing company poised for sustained success. As Spotify navigates through the complexities of a dynamic industry landscape, Ek's leadership and strategic foresight continue to inspire confidence among stakeholders.
Market Response and Investor Sentiment:
Spotify's (NYSE: NYSE:SPOT ) stellar performance in the fourth quarter has not gone unnoticed, as evidenced by the bullish response from investors. With shares surging to a two-year high, market sentiment towards Spotify remains overwhelmingly positive, underscoring the company's status as a top contender in the digital entertainment sphere. As the company charts its course for the future, investor confidence serves as a testament to Spotify's (NYSE: NYSE:SPOT ) unwavering commitment to growth and innovation.
Conclusion:
In an era defined by rapid technological advancements and shifting consumer preferences, Spotify stands out as a beacon of innovation and resilience. With a relentless focus on user growth, profitability, and strategic expansion, the company continues to redefine the boundaries of digital entertainment. As Spotify (NYSE: NYSE:SPOT ) embarks on its journey towards 1 billion users, one thing remains clear – the music streaming giant is not just setting records; it's rewriting the playbook for success in the digital age.
Spotting another opportunity longAs we observe current price action based on the current uptrend leading into a more than average return for tech services, there as been an accumulation from buyers propping up current valuation leading into earnings. Price should continue to make new highs last seen almost 3 years ago during june 2020, and proceed to breach prices over 240 if momentum continues and a positive earnings on the horizon. The new deal with Joe rogan and the accessibility to podcasts are a good generating revenue income stream for spot. More upside to continue heading into and after earnings.
Music streaming is on the rise. Stock idea 31/01/2024Investment experts at UBS have upgraded their rating on Spotify Technology S.A. shares to "Buy". Analysts believe that efficiency initiatives will yield positive results. They are confident of sustained margin expansion and more robust earnings trends for the company in the coming years. The issuer's business is transnational and geographically diversified. Thus, Spotify's revenue may also grow.
So, today, we will examine the Spotify Technology S.A. (NYSE: SPOT) stock chart.
On the D1 timeframe, support has formed at 202.30, with resistance at 219.20. There is a probability of a corrective decline in quotes to the 209.95 level.
On the H1 timeframe, a rebound from the 209.95 level could set a short-term target for a price increase at 239.19, while in the medium term, it could hover around 252.51.
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SPOT Flagging on the 65min ChartSPOT is flagging on the 65 min chart after a breakaway gap on Tuesday. It's been nicely surfing the 20 EMA since the beginning of the year after that big wedge break. Looks like it wants to retest $215 and make new highs.
SPOT Clean BreakoutSPOT has made a nice and tidy breakout of the wedge on the daily. Looking to enter on a break of Thursday's high around $195.50. Targets $200 $202
Spotify's Bold Move - CEO Announces Drastic 17% Workforce CutKEY POINTS
i. Spotify to cut headcount by 17% amid economic challenges, aiming for a leaner, more efficient structure for future growth.
ii. CEO Daniel Ek emphasizes strategic investment and resourcefulness.
Spotify Technology S.A. CEO Daniel Ek announced significant organizational changes, including reducing the company's headcount by approximately 17%. The decision reflects the economic slowdown and the need for Spotify to align with future goals and challenges. Despite recent positive earnings, the cost structure remains too high, prompting this substantial downsizing decision.
In October, Spotify reported third-quarter FY23 revenue growth of 11% year-on-year to €3.36 billion ($3.65 billion), beating the consensus of $3.34 billion. EPS of €0.33 or $0.36 beat the consensus loss of $(0.22).
Ek emphasized that while Spotify's investments in team expansion and content enhancement have driven growth, the company needs to be more efficient and resourceful.
Affected employees will receive a calendar invite for one-on-one discussions, with severance details including an average of five months' pay, payout of unused vacation, healthcare coverage during severance, and immigration support.
Additionally, impacted staff will have access to outplacement services. Ek acknowledged the pain this decision will cause but emphasized the need for a leaner, more efficient structure to invest strategically in the business.
In June, Spotify disclosed the decision to cut its headcount by 200 employees in the global podcast vertical and other functions, representing 2% of the company's workforce. The stock has gained 121% year-to-date.
Price Momentum
SPOT is trading near the top of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
Spotify Shares Surge as It Cuts 17% of Its WorkforceKEY TAKEAWAYS
i. Spotify laid off 17% of its workforce in a third round of job cuts as it moves to contain expenses.
ii. The streaming music service already reduced headcount in January and June.
iii. CEO Daniel Ek blamed a changing economic environment that has created slower growth and higher capital costs.
Spotify Technology (SPOT) shares soared over 7% in early trading Yesterday as the streaming music service slashed its workforce in its latest effort to cut costs.
Spotify CEO Daniel Ek wrote in a letter to employees that the cuts would reduce headcount by about 17%, or roughly 1,500 employees. Ek explained that the move was needed because economic growth ”has slowed dramatically and capital has become more expensive.”
He noted that the company had debated whether to make smaller reductions over the next two years, but added that “considering the gap between our financial goal state and our current operational costs, I decided that substantial action to rightsize our costs was the best option to accomplish our objectives.”
Ek pointed out that Spotify took advantage of lower-cost capital in 2020 and 2021 to expand its operations, but now “we find ourselves in a very different environment.” He said despite efforts to reduce expenses this year, “our cost structure for where we need to be is still too big.”
This is the third layoff for the company this year. Spotify eliminated some 600 workers in January, and approximately 200 in June. The news sent shares of Spotify Technology to their highest level in almost two years.
Technical Analysis
SPOT is trading near the top of its 52-week range and above its 200-day simple moving average.
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
SPOTIFY Buy opportunity on the 4H MA50.Spotify (SPOT) opened considerably higher yesterday but almost closed the 1D candle flat as it couldn't diverge more from the general bearish market sentiment. Clearly this opening jump indicates the stock bias to continue the bullish leg of the Channel Up that started on October 23, but a small pull-back along the majority of the market is probable, which can serve as a more comfortable buy entry for a rally to the end of the year.
Based on the 1D CCI, we may be in a similar situation as February's temporary top, which pulled back and only found support on the 4H MA50 (red trend-line). As a result we are looking for a new buy on the 4H MA50 in order to target the 0.786 Fibonacci level at 208.00.
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FOUR MARKET PHASESAll stocks go thru 4 stages, sometimes each stage can last months or even years, and it's not always easy to recognize like it is on this chart.
Stage 1: Accumulation - buyers coming in stopping the down fall, and the stock starts trading sideways. (Wait)
Stage 2: Markup - Bullish phase, where traders and institutions start buying the up trend. (Buy)
Stage 3: Distribution - where institutions and traders start taking profits - selling. (Sell)
Stage 4: Decline - shorts recognize this stage and start shorting the stock. (Avoid)
$SPOT Spotify Bullish and Bearish IdeaTrade Plan for Spotify ( NYSE:SPOT )
Reasons for the Trade:
Positive earnings report.
Strong consumer sentiment.
Formation of a Bullish PEG candle.
Notable sell-off in alignment with the broader market.
The stock's performance offers potential for both long and short opportunities.
Price retracement to the critical level of 159.50 (or rounded 160). A substantial deviation from this point is a bearish indicator.
Long Setup:
Entry: Look for a bullish movement away from the 159.50 mark, supported by 15-min bullish volume and candlestick patterns.
Key Level to Watch: A break above 165.30, which corresponds to the AVWAP from the earnings announcement.
Stop Loss: Set at 157.66.
Profit Targets:
First target at 165.29 (scale out 50%).
Second target at 167.75.
Risk Management: After hitting 165.29, move the stop loss above entry for a breakeven scenario.
Risk Allocation: 0.50% of the portfolio.
Short Setup:
Entry: Anticipate a bearish price action that breaks below the 159.49 mark.
Entry Confirmation: Rely on price action combined with volume metrics.
Stop Loss: Set at the 162 pivot.
Profit Targets:
First target at 155 (scale out 50%).
Second target at 150.
Risk Management: After achieving the 155 target, adjust the stop loss to breakeven. Ensure there's significant volume during the break of 155 to anticipate a continued downtrend.
Risk Allocation: 1% of the portfolio, given the prevalent bearish sentiment in the broader market.
SPOT EARNINGS CHART - SPOTIFY TRENDS SPOT chart for earnings. IMO, it probably see a rejection around 152ish and then drops down to buy zone 1. After buy zone 1, the return takes it back around 142-147.
Due to the nature of earnings, we could potentially see the drop to 126 all within the AH
Earnings potentially takes it down all the way to 102.
It's hard to say that earnings pumps, and the reason for that is due to the tech sector. Most tech stocks heading into earnings look like a small pump, followed by a decent sized retracement.
Potentially this, it would allow for some great movements, and trade setups.
SPOTIFY: Enormous upside potential.Spotify opened on a huge price jump following the much better than expected EPS and is approaching the July 19th High (182.65). Technically it turned bullish on its 1D outlook (RSI = 65.875, MACD = 1.600, ADX = 16.057) and a new long term uptrend seems secured as yesterday's rebound started after a clear hit and bounce on the HL trendline.
Price wise it looks like the arc pattern of November 2022-January 2023, which after the Resistance break, reached as high as the 2.0 Fibonacci extension. We have every reason to expect a similar long term rise to Fib 2.0 (TP = 235.00).
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SPOT Spotify Technology Options Ahead of EarningsIf you haven`t sold SPOT here:
Then analyzing the options chain and the chart patterns of SPOT Spotify Technology prior to the earnings report this week,
I would consider purchasing the 155usd strike price in the money Puts with
an expiration date of 2023-11-17,
for a premium of approximately $12.70.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Spotify looking extremely bearish and ready for a shortSpotify has put in a confirmation of an existing level as resistance once again. Along with this it is showing clear bearish divergence and and two clear bearish candlestick patterns. This is exactly what we look for when we try and take a trade.
So the trade is easy, we enter at the price today after a small retrace up, then our stop is above the level and the recent high. Why would we want to be shorting Spotify if it broke through that level anyways??
$SPOT: Deafening 160Looking at Spotify here for a potential head and shoulders-like reversal. I still think the communications sector needs to correct a bit before advancing so I think that could translate to NYSE:SPOT here.
Spotify's New AI Bet Could Be a Game Changer for PodcastingSince 2019, the world's largest audio streaming company, Spotify (SPOT 0.73%), has been pouring money into the podcasting space with hopes of diversifying its business away from purely music streaming. These investments have included acquiring podcast studios, paying for exclusive shows, and even buying entire podcast distribution platforms like Megaphone and Anchor in an effort to bolster its advertising revenue.
However, Spotify's podcast initiatives have drawn plenty of criticism from investors because the company's strategy has continuously shifted and the gross margin has remained negative across its advertising division.
But despite these lackluster results, the company continues to believe there is a large opportunity in the podcasting industry. And last week, Spotify introduced a new program that could have big implications in the long run.
