Spotify Shares Climb, UMG Shares Sink Following Q2 Earnings Reports

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Spotify's stock rose and Universal Music shares fell following the companies' Q2 earnings reports this week. Get your music stocks update here.

By raising prices and cutting costs, Spotify has transformed into the kind of profitable company investors always hoped it could become, and the streamer’s upbeatAfter Spotify announced it grew revenues by 20%, improved its gross margin and beat guidance on new subscriber additions, a slew of analysts raised their price targets, including Goldman Sachs , JP Morgan , Rosenblatt , Pivotal Research , Barclays , Cowen and B of A Securities .

UMG went public in Sept. 2021, giving investors an opportunity to capitalize on the largest music company during a time of streaming growth and industry expansion. Even optimistic investors will have to bear through short-term ups and downs, however. “If you think the longer term analysis holds then represents a significant buying opportunity,” J.P. Morgan analystwrote in an email to investors on Friday .

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