Spotify Adds Billions In Market-Cap Since Neil Young 'Nothingburger'

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by Tyler Durden
Monday, Jan 31, 2022 - 03:50 PM

Mainstream media unleased an avalanche of notes over the weekend claiming that Spotify has had $2 billion wiped off its market value because of the actions of Neil Young and others in opposing Joe Rogan’s content on the platform have now been exposed as embarrassing fake news.

Variety and others ran headlines such as:

However, as Summit News' Steve Watson noted, and as pointed out by many on social media, the drop in value of Spotify stock is part of a longer downward trend that started before Neil Young uttered a word about Rogan.

As Steve Watson notes, the writer of the Variety piece even admitted in the article “To be sure, Spotify’s stock price was already on the slide — having plummeted 25% year-to-date as of January 25, the day before Young’s catalog was pulled off Spotify.”

But the majority failed to read beyond the headline, as is the case with most people looking for verification of their own pro-censorship opinions.

But, since Spotify's 'COVID-Info-Hub' statement and Rogan's response - helped by an upgrade from Citi analysts...

Prevailing equity values of Spotify don't assume material subscription growth or improving economics beyond 2023, the Citi analysts argued in a note Monday morning as part of a look at subscriber-based stocks (including Netflix) after significant pressure.

"While Netflix and Spotify may see more modest sub growth, we see other top-line vectors. For Netflix, we believe the firm has ample pricing power. For Spotify, we believe the firm can improve ad-supported monetization," the Citi analysts said.

They lowered target prices on Netflix, Spotify, Roku, DraftKings and Robinhood, with Netflix's target falling to $450 from $595. Spotify's target was lowered to $240 from $275 - still notably above current levels.

...Spotify shares are soaring and the company has now added "billions" in market cap since Neil Young's virtue-signaling...

Another 'narrative' wrecked by reality.