One of the most telling of these analyst notes came on June 19th from Rosenblatt Securities analyst Mark Zgutowicz, who increased his Spotify share price target to $275. Top analysts immediately nudged up their price targets for Spotify, driving investor enthusiasm and sending the market cap spiraling ever-upward. Spotify’s June success of two more exclusive deals, one with Kim Kardashian West for a program focusing on criminal justice, and one with superhero giant DC Entertainment and Warner Bros, which will hand over scripted podcasts set in the DC universe.
Spotify’s May acquisition of exclusive rights to the Joe Rogan Experience, Apple’s biggest podcast of last year, in a reported $100 million deal 2.
Within this, there have been two key catalysts: 1. Spotify’s stock price has doubled in three months for a simple reason: It’s doubled down on its podcast play. Universal held on, and its stake is now worth $1.74 billion, while Sony Music’s remaining stake (around 2.9%) is worth $1.42 billion.īut while Universal and Sony might be getting rich off Spotify’s rise in the short-term, they’re doing so for reasons that could be harming their own businesses in the long term - because Spotify’s buoyant run in the market actually has nothing to do with music. Its rivals bailed: Within 90 days of Spotify going public, indie label group Merlin sold its entire stake, worth around $100 million Warner Music Group sold its entire stake, worth $504 million and Sony Music Entertainment hedged by selling 50% of its stake, collecting $768 million. After SPOT started trading on the New York Stock Exchange in April 2018, UMG resisted the temptation to dump its reported 3.5% holding in the streaming company. At first glance, Spotify’s rapid share boom appears excellent news for the commercial status of music, and especially for music’s biggest company, Universal Music Group (UMG).
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