Apple Pauses Spotify ▶

Apple Pauses Spotify

It’s all hands on deck for investors in music streamer Spotify, as profitability continues to prove elusive and patience runs thin. With hope pinned on original podcasts coming to the rescue, rumors of Apple dipping into that market has got investors holding their breath for Spotify.

With interest rates low and business booming, locating the funds to keep an unprofitable business going isn’t a challenge. Spotify found a huge war chest in the money raised from a public offering in 2018, but investors didn’t just buy in for the tunes. Money talks, and the market wants some fundamentals behind the stock.

It doesn’t happen overnight, however. Spotify pulls in revenue from advertisers, and the Premium versions of the app which exempt you from those ads. As margins tighten, Spotify’s plan has been to buy up as many podcasts as it can afford. CEO Dan Ek revealed podcasts worth between $400 and $500 million dollars had been snapped up, the hope being that as a “Netflix of audio,” the app generates more engagement and appeal. But stop, Apple time!

Apple are in podcasts for different reasons. A growing podcast app doesn’t bear the weight of expectations to turnover profit like Spotify does, because it’s only there to make iPhone users more reluctant to switch from the iPhone. Genius, eh? And it’s got market watchers concerned about Spotify. Commuters and casual listeners need to be under its spell, or sentiment could take a swing.

For now, both stocks are in good health, but we’ll keep an eye on them!

Share:

More Posts

What is a kids brokerage account?

23 March, 2023

A kid’s brokerage account is more accurately called a custodial account. This is a brokerage account that parents or legal guardians can open on behalf of their child.

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.