Spotify Stock on the Rise After Google Updates Payment Program

The stock is coming off two-year lows, hit earlier this month

Digital Content Manager
Mar 24, 2022 at 9:42 AM
facebook twitter linkedin


The shares of Spotify Technology SA (NYSE:SPOT) are up 4.9% at $155.90 this morning, following news that Alphabet's (GOOGL) Google will begin letting the streaming platform use its own payment system in its Android app. The move is part of Google's new pilot payment system, and will allow user to decide weather they want to pay through the Google Play Store or Spotify's payment program. 

The equity is coming off a two-year low of $118.20, touched on March 14. Thanks to today's pop, SPOT looks ready to topple pressure at its 40-day moving average for the first time since mid-November. The security is still down roughly 36% this year. 

Options bears have taken this time to target the streaming stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) 1.31 puts have been picked up for every call during the past 10 weeks. This ratio stands higher than all but 1% from the past 12 months, implying a much heavier-than-usual appetite for long calls of late. 

Short sellers have also been building their positions, with short interest surging 30.9% in the last two reporting periods. Despite this, the 6.34 million shares sold short make up a relatively slim 4.5% of the stock's available float, and less than three days' worth of pent-up buying power. 

Analysts have remained optimistic. Of the 16 in coverage, 12 say "buy" or better, while the 12-month consensus price target of $237.28 is a 51.1% premium to last night's close. 

 

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