Can He Still Hear It Knocking? Mick Jagger Turns 80 as Spotify (SPOT) Paints It Red Following Earnings Release

Today marks the 80th birthday for rockstar and singer/songwriter, Mick Jagger of the Rolling Stones. I’ll repeat that… Today, Mick Jagger turns 80. For half a century, The Stones have been one of the most prominent bands in music. Thanks to their longevity, fans have been able to listen to the band across all mediums from records to cassette tapes to CD’s and now streaming services such as Spotify (SPOT).

While music streaming has nowhere near been around as long as Jagger, it seems to be garnering attention from music lovers and podcast listeners who before couldn’t always get everything, they wanted. As it relates to equities, investing in streaming stocks may prove to be a profitable market segment that could gain investor approval as Spotify boasts a 71% year-to-date return.

While today Mick gets to have his cake and eat it too, SPOT investors are getting no Satisfaction as the stock has traded down ~14% at yesterday’s close and had been up over ~100% YTD prior to its Q2 earnings release. While recently the stock has performed well and streaming stocks are hot, Spotify missed on its Q2 earnings revenue vs estimates (€3.18B vs FactSet €3.21B). As investors demanded, “Gimme Shelter” Spotify guided under expectations, to further disappoint. Even with a record report of 36M new users for the quarter, the market had No Sympathy for the Streaming Devil who has also announced its first price hike for all paid memberships, effective in one month, for all current subscribers.

As the incorporation of AI into businesses becomes the headlining trend, companies such as Spotify seek to utilize AI and enhance performance of their platform, with hopes to tell competitors to get off of their cloud. In their latest earnings announcement, Spotify referenced “strong consumer interactions” with their AI-driven DJ feature. This highlights the consumers appreciation for the platform’s ability to now offer a solution, to the conundrum of having to choose the right song line up. Thank you, Spotify for eliminating that Beast of Music Streaming Burden. Further AI opportunities for Spotify include: core machine learning, generative AI, and company-wide efficiency improvements.

For Spotify, getting back into the green territory with investors shouldn’t be as hard as blowing out 80 candles as the company continues to see an increase in memberships and AI technology, adding value to its service. But who knows? Everything can change in a Jumping Jack Flash. While the audio streaming giant maintains healthy growth in both its free and paid user bases, it’s still not profitable.

 Our guess is that Spotify’s advice to investors when it comes to buying their stock would be to take a Mick Jagger approach who once stated, “Anything worth doing is worth overdoing.”

Happy Birthday, Mick!

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Can He Still Hear It Knocking? Mick Jagger Turns 80 as Spotify (SPOT) Paints It Red Following Earnings Release

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