SPOT: Spotify Stock Pops 8% on Report Price Hikes Are Coming to Multiple Markets

Bloomberg announced the music streamer plans to raise prices by $1 to $2 a month in five markets.

Key Points:

• Spotify shares turn up the volume.
• Price hikes are coming to 5 markets.
• Company struggles to be profitable.
• Spotify stock SPOT turned up the volume on Wednesday after a report by Bloomberg said that the music streamer was planning to raise prices this month. The company is expected to hike subscription fees by $1 to $2 in five markets, including the UK, Australia, and Pakistan. Price rises in the US are coming later this year, according to the report. Shares of the company cranked up by 8% on the news.
• In addition, the Swedish music giant is expected to launch a new basic subscription tier for $11 per month. It will include music and podcasts, but no audiobooks — the newest content venue for Spotify, aiming to take on Amazon’s Audible service. Last year, Spotify moved to raise prices for its premium subscription in the US and other key markets as it strives to reach profitability.
• Share of the company closed at $291.77 a pop, logging a high above the previous one on November 8, 2021. Spotify has struggled to achieve profitability for years. The latest earnings report, released February, showed the platform couldn’t move in the black in 2023 despite wrapping up the year with 602 million monthly active listeners.