Spotify shares climb on price hike plan

27 April, 2021
Spotify shares climb on price hike plan
Spotify's intend to increase a few of its prices might not exactly be favored by customers, but it is faring well with investors.

Its stock gained up to 4 % on Monday to $295.33 on news that the audio streaming giant is increasing rates for several services in america and other countries. Its US family plan will climb to $15.99 from $14.99 on April 30, and several service tiers in the united kingdom will also visit a hike.

“We offer a variety of subscription plans tailored to our users’ needs, and we occasionally update our prices to reflect local macroeconomic factors and meet market demands,” the business said within an emailed statement.

Investors are betting the purchase price increases can provide Spotify more of a cushion since it pursues dominance in the podcasting market. Jefferies analyst Andrew Uerkwitz the other day initiated coverage of the company with a buy rating, saying the business will probably become “the principal audio tracks platform for creators”.

The shares have been down almost 10 % this year through the finish of last week.

Spotify, located in Stockholm, reports its latest quarterly results on Wednesday.