Spotify Shares Close Above $400 for First Time, Valuing Company Above $80 Billion

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Spotify shares closed about $400 for the first time and more music stock performances including HYBE, Live Nation, SiriusXM and SM Entertainment.

The Spotify logo is being displayed on a smartphone with the Spotify icon visible in the background in this photo illustration on Feb. 11, 2024 in Brussels, Belgium.Spotify rode a post-election wave of market enthusiasm to close above $400 for the first time on Friday , valuing the music-streaming giant at nearly $80.5 billion. Before finishing at $400.68, up 4.1% for the week, the company’s stock reached an all-time high of $405.88.

The Stockholm, Sweden-based company’s stock price has increased 113% in 2024 as the company overtook Universal Music Group as the most valuable music company. When investors began to tire of high-growth streaming companies with little to show in profitability, Spotify underwent two major rounds of layoffs in 2023, helping reduce costs. With third-quarter earnings coming on Tuesday , Spotify will show whether it has maintained that momentum.

LiveOne gained 15.6% to $0.89 per share after the music streamer announced that revenue increased 14% to $32.6 million and paid members rose 27% to 645,000 in its. The concert promoter is currently facing a lawsuit from the U.S. Department of Justice but could find a better outcome from new appointments made by the Trump administration.

K-pop stocks surged this week despite HYBE and SM Entertainment both reporting sharp drops in profit last quarter due partly to weaker recorded music revenues. HYBE shares jumped 6.4% after the companyin net income. Likewise, SM Entertainment gained 7.2% the same week the company announced quarterly net profit fell 96% on a 9% revenue decline and a 36% drop in recorded music revenue.

German concert promoter CTS Eventim was the worst-performing music stock of the week, dropping 10.4% to 87.70 euros . The company will release third-quarter results on Nov. 21. Elsewhere, Cumulus Media dropped 6.4% to $0.88, adding to the prior week’s 19% decline, while SiriusXM dropped 5.5% to $26.13.

 

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