Spotify Stock Hits New High, Valuing Company at $72B

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Boosted by news from the SpotifyStreamOn event, the company’s stock price reached an all-time high of $387.44 at midday

, as well as new monetization options announced Monday, could also attract “long tail” podcasters and, eventually, more advertisers.

Not everybody is buying the growth strategy -- at least not at current valuations. Credit Suisse analystpegs Spotify’s value at just $315 per share and expects “disappointing” subscriber additions in 2021. But other analysts see opportunity ahead. Stifel’s, with a price target of $360, sees benefits from geographic expansion and expected price hikes in select markets. Morgan Stanley’s, who puts the stock’s value at $350, likes Spotify’s expansion potential and leadership in audio streaming.

An expanding footprint will also help Spotify grow beyond its core European and North American markets. An additional 80 markets -- in unnamed countries in Africa, Asia and the Caribbean -- will increase Spotify’s addressable market “to more than a billion people ... with nearly half of them already using the internet,” said Ek. It is already available in most of Asia’s most populous countries, such as India and Indonesia, as well as Japan, the world’s second-largest music market.

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