Spotify Stock Moves Higher Amid Joe Rogan Controversy

Citigroup upgraded the stock but slashed its price target

Deputy Editor
Jan 31, 2022 at 10:36 AM
facebook twitter linkedin


The shares of Spotify Technology (NYSE:SPOT) are up 8.9% to trade at $189.33, following the streaming platform's decision to create a Covid-19 information hub in response to controversy surrounding alleged misinformation on Joe Rogan's podcast. Noted folk musicians Neil Young and Joni Mitchell have taken a stance against Rogan's spreading of misinformation, both pulling their content from Spotify.

Also giving Spotify stock a boost today is a bull note from Citigroup, which upgraded the shares to "buy" from "hold." The firm cited SPOT's attractive entry points, as well as its potential for modest subscriber growth, though it did lower its price target to $240 from $275. Canaccord Genuity also slashed its price target, by $50 down to $300.

Ahead of today's coverage, the brokerage bunch was extremely optimistic on Spotify stock. In fact, 12 of the 18 covering analysts rated the equity a "buy" or better, while six still carried a tepid "hold," coming into today. Plus, the 12-month consensus price target of $298.62 is a 64.8% premium to current levels.

Options traders are blasting the equity in response to all the happenings. Already today, 11,000 calls and 5,388 puts have crossed the tape, which is five times the intraday average. New positions are being opened at the most popular contract, the weekly 2/4 202.50-strike call. 

Amid a broader market pullback, Spotify lost more than $20 billion in market cap last week, already shedding nearly 19% in the first month of 2022. A brief rally in early January was cut short by the 200-day moving average. Over the last year, SPOT has turned in just three positive monthly returns, resulting in a 42% year-over-year deficit.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners