Spotify is on such a hot streak that the streaming company nearly reached a $100 billion market capitalization this week. After the company’sshowed cost-cutting has led to record profitability, shares peaked at a new all-time high of $489.69 on Thursday , briefly putting its market capitalization above $98 billion. However, the stock fell on Friday to a final closing price of $458.32, valuing the company at $92.04 billion. While the stock was still up 14.
During the height of the pandemic, Spotify benefitted from a rush into streaming stocks as consumers spent more time with audio and visual media. Investors were also attracted to its push into podcasts, which provided an opportunity to improve upon the margins of its core music service. But investors eventually grew tired of Spotify’s growth-over-profitability mantra, sending the company’s share price from $387 in February 2021 to under $70 in November 2021.
Spotify’s big gain was the primary reason the Billboard Global Music Index grew 5.8% to 2,162.50 despite just six of its 20 stocks finishing the week in positive territory. The float-adjusted, unweighted index measures the aggregate market values of the 20 member companies; Spotify is the most valuable company on the index and is more than twice as valuable as the next company, Universal Music Group .