SPOT stock: buy or sell
Updated on:
Jan 27th, 2021
1
SPOT stock brief
- Spotify closed on Tuesday at $337.01 after inching a 1.02%.
- The stock is configuring an uptrend pattern since September 2020, when it bottomed at $220.70. Up to date, shares marked a 52.70% profit since the beginning of this rally
- Spotify Technology S. A., together with its subsidiaries, provides audio streaming services in the United States, the United Kingdom, Luxembourg, and internationally.
Should I buy Spotify stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $SPOT stock a buy?
In the current situation of Spotify there is not any eligible buy setup. This doesn't mean $SPOT will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Spotify stock?
"To sell or not to sell", if you are holding Spotify shares?. In the same way as when we have to buy shares, choosing when is the best time to sell is not a whimsy decision, and we must follow our own trading style. When selling, as well as buying, detailed setups are very simple to follow and are only valid for selling shares in your porfolio, not for selling short Spotify stock
As a golden rule, you should not hold an investment that yields greater losses than those expected by the time of purchase. The moment to sell your stock must always be ruled by the stop-loss (automatic or manual)
Is it time to sell Spotify stock?
Currently, Spotify stock doesn't match any of our preferred sell setups, so if you hold Spotify stock and your operation is in profit probably is not time to sell now
Spotify ratings
In the last 30 days, 4 ratings were published for Spotify
| Brokerage firm | Rating |
|---|---|
| Dec 30th, 2020 | |
| Monness Crespi & Hardt | |
| Jan 15th, 2021 | |
| Citigroup | Neutral → |
| Smith Barney Citigroup | Neutral → |
| Jan 21st, 2021 | |
| Rosenblatt Securities | |
Spotify stock analysis
Since in September 2020, Spotify has been drawing an uptrend that by now marked an amazing 52.70%. During this uptrend, the price provided some entry points on the breakouts. Latest pullback was on January 4, when price bounced at $305.51. Now, it trades in a consolidation between its last top ($370.95) and its last bottom ($305.51)
SMAs overview
Supports and resistances
The current resistance levels are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band on January 12, the price has been corrected downwards by 3.65%
Relative strength index
The RSI dropped below the overbought level of 70 in mid-December after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Tuesday was 54.46. Since then, Spotify shares sliced a 1.23%
Spotify stock price history
Spotify started trading on Apr 3rd, 2018 priced at $165.90 per share1. Since then, SPOT stock has risen by 103.14%, with an average of 51.57% per year. An investment of $1,000USD on the IPO would have a value of $2,031.40 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Spotify stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis predicting how a stock will performance in the future.
The following table shows the price predictions released by financial institutions for the last 30 days. If you are a small trader you must not trade based on these price targets.
Averaging all price targets exposed below, the forecasted price for Spotify stock is $360.00. Spotify closed at $337.01 on Tuesday, so the target price is forecasting a growth by 6.82%.
| Brokerage firm | Price target |
|---|---|
| Dec 30th, 2020 | |
| Monness Crespi & Hardt | $310.00 → $380.00 |
| Jan 15th, 2021 | |
| Citigroup | $270.00 → $310.00 |
| Smith Barney Citigroup | Not available |
| Jan 21st, 2021 | |
| Rosenblatt Securities | $325.00 → $390.00 |
Earnings and financials
Earnings call was hosted by Spotify ($SPOT) last October after presenting the earnings report. SPOT missed Wall St estimates and reported of $-0.68, that is a -11.48% less than the initial estimates of $-0.61. Even so, reported revenues of $2.3 billion were in line with Wall St. forecasts.
This compares to Earnings of $0.36 per share same quarter last year, so reported EPS is a loss of -288.89%. Looking at sales, figures exploded a 14.10% compared to $17.3B same quarter 12 months ago.SPOT ($SPOT) will host the quarterly earnings call on Wednesday next week. Wall Street estimates of $-0.71, compared to Q3 that made $-0.68.
Spotify performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Spotify ($SPOT) | 2.20% | 20.30% | 24.80% |
Please read:
The opinions expressed in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not have any knowledge of the individual circumstances of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for education motives onlySPOT summary
| Tuesday, January 26th, 2021 | |
|---|---|
| Open | $337.24 |
| Close | $337.01 |
| Day range | $332.33 - $340.5 |
| Previous close | $333.61 |
| Session gain | 1.02% |
| Average true range | $22.31 |
| 50d mov avg | $311.95 |
| 100d mov avg | $281.82 |
| 200d mov avg | $248.81 |
| Earnings date | February 3rd, 2021 |