Spotify Stock Rises As Streaming Music Rival Exits Business

Spotify Technology (SPOT) stock rose Tuesday after social media firm TikTok announced that it is ending its rival subscription streaming music service.

↑
X

NOW PLAYING
How To Find Top Stocks By Analyzing Fund Sponsorship

TikTok confirmed Tuesday that it is shutting down TikTok Music on Nov. 28, Music Business Worldwide reported. TikTok’s music service was once seen as a potential “Spotify killer,” the publication said.

Now, TikTok has opted to partner with external music streaming services such as Spotify, Apple‘s (AAPL) Apple Music and Amazon.com‘s (AMZN) Amazon Music.

TikTok Music currently is live in five regions: Australia, Brazil, Indonesia, Mexico and Singapore.

Spotify Stock Jumps On News

On the stock market today, Spotify stock climbed 3.1% to close at 380.36.

On Thursday, Spotify stock broke out of a six-week consolidation pattern at a buy point of 359.38, according to IBD MarketSurge charts. The 5% chase zone extends to 377.35, based on IBD trading guidelines.

On Tuesday, CFRA Research analyst Kenneth Leon reiterated his buy rating on Spotify stock and raised his price target to 425 from 375.

“We see many parallels with Spotify to video streaming leader Netflix (NFLX),” Leon said in a client note. “And Ted Sarandos, Netflix’s co-CEO, sits on Spotify’s board of directors.”

Spotify stock is on two IBD lists: SwingTrader and Global Leaders.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

YOU MAY ALSO LIKE:

Taiwan Semiconductor, IBD Stock Of The Day, Basks In AI Glow

Duolingo Adds AI Innovations To Language Learning App

Apple iPhone 16 Early Demand Deemed Healthy

MarketSurge: Research, Charts, Data And Coaching All In One Place

Get Stock Ideas From IBD Experts Each Morning Before The Open