Spotify’s Close Friends
On Friday, the stock market extended losses related to Fed’s recent monetary policy decisions. — More on that in the “Overall Market” section.
Beyond the overall market, a streaming company delivered results above its investors’ expectations. Meanwhile, a double downgrade heavily impacted an entertainment company’s stock performance. — More on that in the “What’s Up?” and “What’s Down?” sections.
By the way, Spotify is looking to end Apple’s podcast dominance. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
- U.S. markets: The stock market ended in the negative on Friday. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin‘s price decreased to $35K per coin.
Daily trading lessons right to your inbox
Get 12 free stock market lessons delivered to your email from Investor’s Business Daily, the leader in investing education for over 35 years. We’ll cover the basics of better investing and show you how to give yourself an edge in the market.
GET FREE LESSON outside the norm.
(By clicking you agree to receive email updates and special offers from Investors Business Daily)
Fed’s Decision Effect
The stock market ended in the red zone on the week’s last trading session.
Following the Federal Reserve’s monetary policy decision earlier this week, the markets extended losses. The Dow Jones index sank by more than 1.6%, posting its fifth losing day in a row. Friday’s losses brought the index to its worst week since October. Furthermore, the S&P 500 index traded lower, and the Nasdaq index gave back Thursday’s session gains.
So, what happened?
Shares of Roku (Ticker: ROKU) were up by more than 4% on Friday. After the company announced its original content strategy a few months ago, investors were uncertain whether the bet would pay off. However, the streaming company’s recent numbers show that the “Roku Originals” beat all previous expectations. During a two-week span, the platform’s original contents had more unique users streaming the shows than ever before. So for investors, it seems that Roku’s bet is paying off.
Top 5 Stocks Under $10 For 2021
Investing in stocks under $10 could significantly increase the returns on your portfolio, especially if you pick the right stocks! Within this report you will find 5 top stocks that offer investors huge upside potential and the best bang for their buck.
Get the top 5 stocks now!
(By clicking you agree to receive email updates and special offers from FxTrade Group)
So what happened?
Shares of CuriosityStream (Ticker: CURI) were down by more than 14% on Friday. The company is a player in the streaming content market. The dip came after Bank of America Securities double downgraded the entertainment company’s stock. The bank is convinced CuriosityStream already earned almost all of its 2021 expected revenue, changing the rating from buy to underperforming as CURI reported worse-than-expected earnings for several consecutive quarters. From the bank’s perspective, the company would need to invest even more to grow its sales, extending its losses.
Spotify’s Close Friends
So what happened?
In response to Apple’s (Ticker: AAPL) new podcast subscription service with exclusive hosts, Spotify (Ticker: SPOT) spent nearly $1 billion on exclusive deals with podcasters. Included in Spotify’s chart, the famous Joe Rogan’s show reportedly costed more than $100 million. Although the strategy may seem expensive, it is crucial for Spotify’s goal of surpassing Apple Podcasts’ listenership. Furthermore, the company integrated its Greenroom (a.k.a Clubhouse competitor) platform to the streaming service to connect fans to their favorite hosts. This way, Spotify expects to have the creators’ preference when they release new content.
It seems that Spotify is on the mission to block Apple from taking over the Podcast market so easily.
If you have any questions, or suggestions let us know by emailing us at [email protected]. We look forward to hearing from you.