Streaming Stocks Soar After Election as Spotify Hits All-Time High

Spotify, the music-streaming giant, achieved a significant milestone. Its stock closed above $400 for the first time ever on November 8th. The company, based in Stockholm, Sweden, now carries a valuation close to $80. 5 billion. This comes after a notable increase of 113% in its stock price this year, allowing it to surpass Universal Music Group as the most valuable music company. The surge in stock prices can be attributed to multiple factors. Firstly, Spotify's strategic cost-cutting measures, including two significant layoffs in 2023, aided in maintaining subscriber growth and revenue without hampering profitability. As the company gears up to release its third-quarter earnings on November 12th, analysts are optimistic. Deutsche Bank, for instance, increased its price target for Spotify to $440 from $430. The stock market has been booming post-election, driven by Donald Trump's victory and the U. S. Federal Reserve’s decision to lower interest rates. Major indices, like the Nasdaq Composite and the S&P 500, hit record highs, while the Shanghai Composite Index in China and the FTSE 100 in the U. K. also saw considerable gains. Spotify wasn't alone in its success. iHeartMedia's stock jumped significantly after they announced plans to restructure debt and cut costs. CEO Bob Pittman emphasized the role of technology in improving operations, which is expected to save $200 million in 2025. Music streamer LiveOne also reported a rise in revenue and paid members. K-pop stocks surged despite reports of profit drops. Companies like HYBE and SM Entertainment saw their stocks rise by 6. 4% and 7. 2% respectively, likely driven by optimism for future growth. iHeartMedia, Live Nation, and other music companies saw similar boosts. Not all companies fared well, however. CTS Eventim, a German concert promoter, fell by 10. 4%, and other stocks like Cumulus Media and SiriusXM also saw declines.