SPOT stock: buy or sell

SPOT stock price: $337.01 1.02% At close on Jan 26th, 2021

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

Spotify analysts' ratings - Last 30 days
Brokerage firmRating
Dec 30th, 2020
Monness Crespi & Hardt Strong buy
Jan 15th, 2021
Citigroup NeutralStrong sell
Smith Barney Citigroup NeutralStrong sell
Jan 21st, 2021
Rosenblatt Securities Strong buy

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

SPOT stock SMAs chart

Supports and resistances

The current resistance levels are:

  • R1: $346.44 (2.80% above)
  • R2: $370.95 (10.07% above)
  • The current supports are:

  • S1: $305.51 (-9.35% below)
  • S2: $299.67 (-11.08% below)
  • S3: $294.67 (-12.56% below)
  • Bollinger bands

    Since the price surpassed the upper band on January 12, the price has been corrected downwards by 3.65%

    SPOT stock Bollinger Bands chart

    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%

    SPOT stock RSI chart

    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

    SPOT stock price history chart

    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%.

    Spotify stock price predictions
    Brokerage firmPrice 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

    SPOT performance compared
    Company1m3m6m
    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 only

    SPOT summary

    Tuesday, January 26th, 2021
    Open$337.24
    Close$337.01
    Day range$332.33 - $340.5
    Previous close$333.61
    Session gain1.02%
    Average true range$22.31
    50d mov avg$311.95
    100d mov avg$281.82
    200d mov avg$248.81
    Earnings dateFebruary 3rd, 2021

    Frequently asked questions

    What is Spotify stock symbol?

    Spotify Technology S.A. is a public company trading in the US stock market with the SPOT symbol

    Is Spotify stock a buy or sell?

    Spotify received 4 ratings in the last 30 days: 2 bullish, 2 bearish and 0 neutral.

    Will SPOT go up?

    Spotify had different price forecasts published by analysts in the last month setting the target price to $360.00. That is a 6.82% than the last price ($337.01).