Entering a Melodic Investment Arena
Spotify Technology SPOT stirred pre-market markets as the curtains lifted on its long-awaited Q2 earnings report. Anticipation loomed large as SPOT stock struggled amidst a bearish wave, despite optimistic analyst targets. Would this report be the crescendo Spotify needed?
The results hit the right notes. Spotify struck an earnings chord of 274 million euros (around $298 million), harmoniously translating to 1.33 euros per share, outclassing the consensus view of 1.05 euros per share. Revenues crooned at 3.8 billion euros, in tune with expectations.
A standout was the 14% uptick in monthly active users (MAUs) to 626 million, slightly shy of guidance but noteworthy. Premium subscribers hit a high note with a 12% lift to 246 million, surpassing expectations by 1 million. Ad-supported revenue also sang a sweet tune, surging 13% to 456 million euros, all melody courtesy of music streaming and podcasts.
After Monday’s session closed at $295.45, SPOT stock struck a high note, hitting $336 in Tuesday’s pre-market, a melodious 14% score.
Diversification through MUSQ ETF: While Spotify is a major player in the sonic stratosphere, it’s not the solo artist. The MUSQ Global Music Industry ETF MUSQ harmonizes various industry components, from YouTube Music under Alphabet Inc GOOG to upcoming reports.
The themed ETF serenades investors with a medley of music industry players, covering streaming, content, live events, radio, tech, and AI. With Spotify as a key holding at 3.88% of net assets and Alphabet at 5.8%, MUSQ orchestrates a symphony, including acts like Tencent Music Entertainment Group TME and Live Nation Entertainment Inc LYV.
Charting MUSQ’s Melody: MUSQ traded at $24.52, rising by nearly 1% from the previous session. A crescendo on June 24 hinted at a positive sentiment turnaround.
- SPOT’s pre-market overture on Tuesday could crescendo MUSQ’s performance.
- From a December low to the recent upswing, MUSQ’s trajectory shows signs of a melodic turnaround.
- A harmonious recovery may ensue, especially fueled by Spotify’s solid results.
- Encouragingly, MUSQ trades above key moving averages, a reassuring note in market health.
Featured photo by javier dumont from Pixabay.