Joe Rogan, on the biggest stars in podcast game, has signed an exclusive deal with Spotify (NYSE:SPOT), which will see his show, The Joe Rogan Experience, move away from other platforms such as YouTube. On YT Joe Rogan goes by PowerfulJRE and he recently had interviews with Tony Hawk, Elon Musk…
The multi-year deal is believed to be worth $100m which is a large amount of money.
Rogan’s podcast, will arrive on the streaming giant on September 1st.
On this news SPOT stock price went up 11% and I am sure many Spotify stock holders were mega-happy about it.
But what now that the dust has settled?
Since Tuesday SPOT stock price went another $15 up and closed $192.74 on Thursday. The magical number of 192 is a very important for everyone holding SPOT shares.
Why is that? Exactly two years ago Spotify stock reached $192 and everything went downhill from there. For two years investors tried their luck with SPOT but without any luck. Then coronavirus arrived and with the help of Joe Rogan it came to this level again. Four months after it fist time reached $192 SPOT stock went down to $100.
It hovered between $110 and $130 for two years and closed at $122 on April 3, 2020. Now it is back at $192.00
Just imagine how many people invested in SPOT in those 2 years? All those people now see a chance to get out of the SPOT stock . No, Joe Rogan is not a game changer for Spotify Technologies SA in my eyes.
In the 2 years period between those two $192 spikes a number of Spotify premium subscribers almost doubled (from 83 million to 140 million) but the stock price is still the same. How can this be possible? Maybe because Spotify is paying $100M to attract known podcasters? Maybe because those same podcasters have their shows free of charge on Youtube. Maybe because in an effort to diversify their revenue streams Spotify is now asking record labels and artists for money to advertise their songs within its app.
Fuck Spotify, and fuck any “podcast” that’s only playable in one app.— Marco Arment (@marcoarment) May 19, 2020
Analyst Target Prices for SPOT stock
HIGH TARGET 190.00
MEAN TARGET 163.88
LOW TARGET 110.00
52 WK HIGH 196.75
52 WK LOW 109.18
Spotify stock is currently a “Moderate Buy” based on 15 analyst recommendations.
7 Strong Buy
1 Moderate Buy
2 Strong Sell
Maybe I am wrong and SPOT stock is going to surge over $250 but something is telling me this will not happen soon.