Analyst upgrade sparks 13.5% rise in Spotify’s share price

The last week’s ructions around Joe Rogan were starting to spark stories about the negative impact on Spotify’s share price.

But wait: yesterday the streaming service’s market cap bounced back: from $33.14bn at the close of play on Friday to $37.59bn last night.

Is that a $4.45bn vote of confidence from Wall Street in Spotify’s response to the row? Well, not quite.

It’s more likely related to the decision of analysts at Citi to upgrade their recommendation on Spotify stock from ‘neutral’ to ‘buy’, alongside a similar bump for Netflix.

“While Netflix and Spotify may see more modest sub

growth, we see other top-line vectors,” wrote Citi’s Jason Bazinet in a research note. “For Netflix, we believe the firm has ample pricing power. For Spotify, we believe the firm can improve ad-supported monetization.”

Cue a 13.5% increase in Spotify’s share price, and 11.1% for Netflix.

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