Spotify Technology (SPOT) is the IBD Stock of the Day, bouncing off its 50-day moving average line in a bullish sign. The stock has cleared a nearly monthlong downtrend and its 21-day line, making it actionable after a strong rebound.
Analysts see Spotify adding 7.9 million premium subscribers in Q4, bringing its total to 259.9 million worldwide. Morgan Stanley’s Benjamin Swinburne rates SPOT as an “overweight” stock with a price target of $550, citing the company’s market-leading position and profitability. BofA Securities’ Jessica Reif Ehrlich also labels Spotify as a “top pick,” predicting continued growth in music streaming alongside company-specific initiatives.
The stock needs another week to form a flat base, which would have a buy point of $506.47, according to IBD MarketSurge charts. With its all-time high reached on December 4, SPOT is poised for further gains. Follow Patrick Seitz for more stories on consumer technology and software stocks at @IBD_PSeitz.
Source: https://www.investors.com/research/ibd-stock-of-the-day/spotify-stock-actionable-new-year-bounce