Spotify stock rose 4.7% this week to $214.13, while the Billboard Global Music Index rose 2.3% to an all-time high of 1,595.11. Spotify’s fourth consecutive week of gains, announced two weeks before its fourth-quarter results on February 6, will put the full impact of recent price hikes in the U.S. and other major markets into perspective.
If a rising tide lifts all boats, Netflix’s best fourth-quarter earnings report explains why Spotify stock had another strong week. Netflix shares rose to 18.1 this week after the company announced it added 13.1 million subscribers in the fourth quarter, the most since 2020, and revenue rose 12.5% to $8.8 billion. % to $570.42 (including a 10.7% rise on Wednesday alone). Not only was the quarter an encouraging one for streaming overall, but the video streaming giant provided the music industry with insight into finding growth in a mature market. Netflix’s growth has not been hurt by the company’s continued price hikes or recent password restriction efforts. In fact, pricing played a key role in its growth.
“As we invest in and improve Netflix, we may ask our members to pay a small additional fee to reflect those improvements. This allows us to make additional investments to further improve and grow our service. “We can promote this positive turnover,” the company said. Letter to shareholders. Reductions in password sharing are also having an impact. Netflix says “millions” of its subscribers benefit from features like Profile Transfer (where users transfer their profile from a shared account to a new account) and Extra Members (which adds users to their account for $7.99 per month in the US). It is said that it is using Paid sharing is “now business as usual,” he said.
Because of its large market capitalization, Spotify’s rise was a major driver of this week’s 2.3% rise in the Billboard Global Music Index. The best performing music stock this week was iHeartMedia, up 26.7% to $2.85, 68% below its 52-week high of $9.01. Music streaming company LiveOne also performed well, rising 13.5% to $1.51. The company announced Thursday that Podcast One (LiveOne spun off from the podcast company and remains majority owner) has reached new deals with two of its most popular podcasts. Adam Carolla Podcast and Adam and Dr. Drew Show. Elsewhere, Sphere Entertainment shares rose 8.7% to 34.45 after the company recently hired former Google executive Jennifer Koester as president of Sphere Business Operations, effective February 5. It became a dollar. One of Koester’s duties will be to develop a corporate conference business. For product launches and other events.
Eight of the index’s 20 stocks fell this week, but none fell more than 3%. SiriusXM stock fell 1.5% to $5.34. The company announced Wednesday that it would maintain its quarterly cash dividend at $0.02666 per share. Hypnosis Songs Fund falls 2.1% to £0.7057 per share amid multiple regulatory filings suggesting tensions between the company’s new board and investment advisory firm Hypnosis Songs Management It became. Hipgnosis shareholders are scheduled to vote on Feb. 7 on a proposal that would have paid fees to catalog bidders.
U.S. stocks rose across the board this week as positive economic news impacted the market. The tech-heavy Nasdaq rose 0.9% to 15,455.36, while the S&P 500 rose 1.1% to 4,890.97. Microsoft, Alphabet and Meta hit all-time highs this week, but Tesla shares fell 13.6% after the company warned that 2024 car sales “may be significantly lower” than last year. Intel shares fell 11.9% on Friday after the company gave investors a disappointing outlook for the current quarter on Thursday’s earnings call.
On Thursday, the U.S. Department of Commerce’s Bureau of Economic Analysis released data showing gross domestic product grew at a faster-than-expected annual rate of 3.3% in the fourth quarter of 2023. And on Friday, the Department of Commerce released the following data: Personal income rose 0.3% in December, indicating that the year ended on a strong note. Furthermore, when we measured how much people were spending, we found that price increases were slowing. Personal consumption expenditures in December increased by 2.6% compared to the same month last year (2.9% if food and energy are excluded). New consumer sentiment data released last week showed that Americans’ sentiment about the economy and expectations for future inflation are improving.
Stock prices also rose outside the United States. In the UK, the FTSE 100 index rose 2.3% to 7,635.09. South Korea’s KOSPI composite index rose 0.2% to 2,478.56. Meanwhile, China’s SSE composite index rose 2.8% to 2,910.22.
