Spotify Technology (SPOT:NYE) is planning layoffs starting from this week, and the number of positions to be eliminated was not mentioned. However, Spotify does have about 9,800 employees, according to its third-quarter earnings report. The company laid off 38 staff from its Gimlet Media and Parcast podcast studios in last October.
This move comes as many technology companies are announcing job cuts to lower costs in response to reduced advertising revenue and a shaky economic outlook. Companies such as Amazon (AMZN:NSD), Microsoft (MSFT:NSD), Adobe (ADBE:NSD), Meta (META:NSD) and Google’s (GOOGL:NSD) parent company Alphabet have also announced layoffs.
Spotify made a massive commitment to podcasting beginning in 2019, spending over a billion dollars on acquiring podcast networks, creation software, a hosting service, and the rights to popular shows like The Joe Rogan Experience and Armchair Expert.
However, the investments have tested investors’ patience, with shares tumbling 66% last year as investors questioned when they’d begin seeing returns. Spotify executives said in June that its podcast business would become profitable in the next one to two years.
Spotify Stock Price Analysis:
Spotify Technology (SPOT:NYE) has seen its stock price fluctuate over the past year. Overall, the stock has performed well, with a strong upward trend in the first half of 2022, followed by a dip in the latter half of the year. (https://rentalsfloridakeys.com/) Spotify stock is currently trading at $97.91.
However, the stock’s performance has also been affected by concerns about the company’s financials and profitability. Despite these concerns, the company has continued to grow its user base and revenue, which has helped to support its stock price.
Analyst Ratings:
Analysts rate Spotify stock with a consensus “Strong Buy” rating and an average 12-month stock price target of $121.07 per share.
Jefferies Financial LLC downgraded Spotify stock price target to $95 from $115 and rates as “Hold”.
STA Research maintains “Buy” rating and spotify stock price target of $110.
UBS targets down the Spotify stock price target to $100.
Company Profile:
Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. It operates through Premium and Ad-Supported segments.
The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.
The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers on their computers, tablets, and compatible mobile devices.
The company also offers sales, marketing, contract research and development, and customer support services. As of December 31, 2021, its platform included 406 million monthly active users and 180 million premium subscribers in 184 countries and territories.
The company was incorporated in 2006 and is based in Luxembourg, Luxembourg.
