🍨 Daily Scoop: Spotify’s Close Friends | Trade Stocks

Spotify’s Close Friends

By Mon, Jun 21, 2021

Hey Scoopers,

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:

Market Recap

  • 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.

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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.

Original Content

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.

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Double Downgraded

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.

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