Spotify Shares Gain on Plan to Increase Some of Its Prices
(Bloomberg) -- Spotify Technology SA’s plan to increase some of its prices may not be popular with customers, but it’s sitting well with investors.
Its stock gained as much as 4% to $295.33 on news that the audio-streaming giant is increasing the rates of certain services in the U.S. and other countries. The U.S. family plan will climb to $15.99 from $14.99 on April 30, and several service tiers in the U.K. will see 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 company said in an emailed statement.
Investors are betting the price increases can give Spotify more of a cushion as it pursues dominance in the podcasting market. Jefferies analyst Andrew Uerkwitz last week initiated coverage of the company with a buy rating, saying company is likely to become “the primary audio platform for creators.”
The shares had been down almost 10% this year through the end of last week.
Spotify, based in Stockholm, reports its latest quarterly results on Wednesday.
©2021 Bloomberg L.P.