Citi downgrades Spotify (SPOT) stock from “Buy” to “Neutral” with analysts citing revenue and user retention concerns. With heavy changes in Spotify's business model, from subscription price hikes and an emphasis on developing podcasting content, there are questions about the effectiveness of these strategies. Yahoo Finance’s Seana Smith and Bradley Smith report on this story and what changes Spotify may consider to capitalize on music and streaming trends. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Industry trends, financial trends, and market trends can all play a part in determining which stocks rise and fall over time. The operator of the world's largest music streaming app, Spotify (NYSE: SPOT) turned in a magnificent 2023, as music fans increasingly turn to paid or ad-supported streaming to hear their favorite hits. According to 2022 RIAA statistics, compiled by Visual Capitalist, 89% of music revenue is now generated via digital formats.
Spotify today unveils its 2023 Wrapped campaign - announcing the top artists, albums, songs, and podcasts that defined how over 574 million people around the world listened this year. Users can also discover their personalized Wrapped user experience when they open Spotify, packed with brand new interactive features to celebrate their year on Spotify.