Spotify Analyst Rating Cut Amid 'Too Aggressive' Growth Expectations
Pivotal Research Group dropped its Spotify rating to hold after the company approached Pivotal's $200 price target, Jeffrey Wlodarczak wrote investors. The analyst cited “too aggressive” 2018 premium monthly average user growth expectations, ahead of Thursday earnings report. There's “credible…
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weakening global Google Spotify search trends data” that continued into Q3, said Wlodarczak Wednesday. He noted the launch of a “revamped Google YouTube Music” that’s likely to be integrated with Android phones, which, along with Apple Music integration on iPhones, creates the potential for Spotify “to get squeezed as Google and Apple lever their smartphone ‘gatekeeper’ status to aggressively incentivize consumers to trial their internal music streaming services.” Wlodarczak said Apple “likely just passed SPOT” in the number of premium U.S. subscribers, while Facebook has signed music licensing deals to allow its customers to add music to videos, which “may (or may not) lead to a more aggressive FB transition into music.” Spotify shares closed up 0.1 percent Wednesday at $188.09.