Stocks To Watch: Spotify technology S.A [NYSE: SPOT] is in the green in pre-market trading. At the time of writing, SPOT was up by 5.64% to trade at $127.50. Its upside momentum is driven by revenue numbers that have beat analyst expectations. The company has announced that Q3 revenues rose by 28% to hit 1.73 billion Euros. This is higher than the 1.72 billion Euros that analysts were expecting. On top of that, the company has forecast that its Q4 revenues could range between 1.74 billion Euros and 1.94 billion Euros. That’s higher than the 1.89 billion Euros that analysts are expecting for Q4.
In terms of subscriber numbers, the company’s Q3 subscriber numbers now stand at 113 million. That’s 31% higher than the company’s subscriber numbers last year. It is also a figure that has beat analysts’ expectations for the company’s subscriber numbers for the quarter ending September 30th. The consensus estimate by analysts was 112.9 million. The company has also reported that it expects subscriber numbers for Q4 to rise to around 120 million and 125 million subscribers. It’s a figure that is in alignment with market expectations of 122.6 million subscribers for Q4.
Nonetheless, the company still faces competition from other major players in the music streaming business. Apple remains one of its main competitors in the streaming business. Today, the Financial Times has reported that Spotify’s chief financial officer, Barry McCarthy, is set to leave after the shares of the company dropped in recent months. McCarthy was the brains behind Spotify’s direct listing and was critical to guiding the company in its first year as a listed company. He will be replaced by Paul Vogel in January 2020.
Looking at the charts, SPOT is up in pre-market, a continuation of Friday’s positive trend, when it closed the day with gains of 1.57%. In Friday’s session, volumes were quite high too, and 2.32 million SPOT shares were traded. SPOT is possibly in an early bullish rally, which started after the $110 support level held.
About Spotify Technology S.A
Spotify Technology S.A and its subsidiaries is a provider of music streaming services all across the world. The company has two segments namely: Ad-Support and Premium. It has its headquarters in Luxembourg City, Luxembourg.