Bank of America traders are long Spotify because of new Taylor Swift album dropping in April
Spotify shares are safe and sound with a new Taylor Swift album on the way, according to Bank of America traders. The world-famous singer announced her latest album, titled “The Tortured Poets Department,” will come out April 19. She dropped the news while accepting the Best Pop Vocal Album award for “Midnights” during Sunday night’s Grammy Awards ceremony in Los Angeles. That’s a positive catalyst in the second quarter for Spotify, said traders at the bank, who operate separately than the investment research team. Swift’s 16-song project could boost the number of monthly active users or subscribers, as well as general engagement and app logins, the team said. “Her albums are Super Bowls for streaming and she just [surprisingly] announced a surprise Super Bowl and date,” wrote members of the trading desk, who said they were long on the stock. Bank traders pointed to the fact that “Midnights” became Spotify’s most-streamed album in a single day as reason for excitement. It also propelled Swift to clinch the title of the most-streamed artist in one day in the platform’s history, they added. That offers “positive vibes,” the traders wrote. The note comes ahead of Spotify’s fourth-quarter financial report expected Tuesday morning. Analysts polled by FactSet are expecting the streaming giant to lose 40 cents per share in the quarter on $4.104 billion in sales. Swift told attendees that she had been keeping the album a secret for two years. Her surprise came amid speculation that she would announce the re-release of “Reputation.” It also comes as the American performer readies for the next stage of her blockbuster world tour, which has been lauded as an economic engine. SPOT YTD mountain Spotify, year to date Shares of Spotify slipped nearly 1% in Monday’s session. Despite that, the stock has climbed more than 17% in 2024, building on last year’s 138% rally. The average Wall Street analyst has a buy rating on the stock, according to FactSet. The typical price target implies shares can add 1.1% over the next year.
