SPOT Clean BreakoutSPOT has made a nice and tidy breakout of the wedge on the daily. Looking to enter on a break of Thursday's high around $195.50. Targets $200 $202
639 trade ideas
Spotify's Bold Move - CEO Announces Drastic 17% Workforce CutKEY POINTS
i. Spotify to cut headcount by 17% amid economic challenges, aiming for a leaner, more efficient structure for future growth.
ii. CEO Daniel Ek emphasizes strategic investment and resourcefulness.
Spotify Technology S.A. CEO Daniel Ek announced significant organizational changes, including reducing the company's headcount by approximately 17%. The decision reflects the economic slowdown and the need for Spotify to align with future goals and challenges. Despite recent positive earnings, the cost structure remains too high, prompting this substantial downsizing decision.
In October, Spotify reported third-quarter FY23 revenue growth of 11% year-on-year to €3.36 billion ($3.65 billion), beating the consensus of $3.34 billion. EPS of €0.33 or $0.36 beat the consensus loss of $(0.22).
Ek emphasized that while Spotify's investments in team expansion and content enhancement have driven growth, the company needs to be more efficient and resourceful.
Affected employees will receive a calendar invite for one-on-one discussions, with severance details including an average of five months' pay, payout of unused vacation, healthcare coverage during severance, and immigration support.
Additionally, impacted staff will have access to outplacement services. Ek acknowledged the pain this decision will cause but emphasized the need for a leaner, more efficient structure to invest strategically in the business.
In June, Spotify disclosed the decision to cut its headcount by 200 employees in the global podcast vertical and other functions, representing 2% of the company's workforce. The stock has gained 121% year-to-date.
Price Momentum
SPOT is trading near the top of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
Spotify Shares Surge as It Cuts 17% of Its WorkforceKEY TAKEAWAYS
i. Spotify laid off 17% of its workforce in a third round of job cuts as it moves to contain expenses.
ii. The streaming music service already reduced headcount in January and June.
iii. CEO Daniel Ek blamed a changing economic environment that has created slower growth and higher capital costs.
Spotify Technology (SPOT) shares soared over 7% in early trading Yesterday as the streaming music service slashed its workforce in its latest effort to cut costs.
Spotify CEO Daniel Ek wrote in a letter to employees that the cuts would reduce headcount by about 17%, or roughly 1,500 employees. Ek explained that the move was needed because economic growth ”has slowed dramatically and capital has become more expensive.”
He noted that the company had debated whether to make smaller reductions over the next two years, but added that “considering the gap between our financial goal state and our current operational costs, I decided that substantial action to rightsize our costs was the best option to accomplish our objectives.”
Ek pointed out that Spotify took advantage of lower-cost capital in 2020 and 2021 to expand its operations, but now “we find ourselves in a very different environment.” He said despite efforts to reduce expenses this year, “our cost structure for where we need to be is still too big.”
This is the third layoff for the company this year. Spotify eliminated some 600 workers in January, and approximately 200 in June. The news sent shares of Spotify Technology to their highest level in almost two years.
Technical Analysis
SPOT is trading near the top of its 52-week range and above its 200-day simple moving average.
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
SPOTIFY Buy opportunity on the 4H MA50.Spotify (SPOT) opened considerably higher yesterday but almost closed the 1D candle flat as it couldn't diverge more from the general bearish market sentiment. Clearly this opening jump indicates the stock bias to continue the bullish leg of the Channel Up that started on October 23, but a small pull-back along the majority of the market is probable, which can serve as a more comfortable buy entry for a rally to the end of the year.
Based on the 1D CCI, we may be in a similar situation as February's temporary top, which pulled back and only found support on the 4H MA50 (red trend-line). As a result we are looking for a new buy on the 4H MA50 in order to target the 0.786 Fibonacci level at 208.00.
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FOUR MARKET PHASESAll stocks go thru 4 stages, sometimes each stage can last months or even years, and it's not always easy to recognize like it is on this chart.
Stage 1: Accumulation - buyers coming in stopping the down fall, and the stock starts trading sideways. (Wait)
Stage 2: Markup - Bullish phase, where traders and institutions start buying the up trend. (Buy)
Stage 3: Distribution - where institutions and traders start taking profits - selling. (Sell)
Stage 4: Decline - shorts recognize this stage and start shorting the stock. (Avoid)
$SPOT Spotify Bullish and Bearish IdeaTrade Plan for Spotify ( NYSE:SPOT )
Reasons for the Trade:
Positive earnings report.
Strong consumer sentiment.
Formation of a Bullish PEG candle.
Notable sell-off in alignment with the broader market.
The stock's performance offers potential for both long and short opportunities.
Price retracement to the critical level of 159.50 (or rounded 160). A substantial deviation from this point is a bearish indicator.
Long Setup:
Entry: Look for a bullish movement away from the 159.50 mark, supported by 15-min bullish volume and candlestick patterns.
Key Level to Watch: A break above 165.30, which corresponds to the AVWAP from the earnings announcement.
Stop Loss: Set at 157.66.
Profit Targets:
First target at 165.29 (scale out 50%).
Second target at 167.75.
Risk Management: After hitting 165.29, move the stop loss above entry for a breakeven scenario.
Risk Allocation: 0.50% of the portfolio.
Short Setup:
Entry: Anticipate a bearish price action that breaks below the 159.49 mark.
Entry Confirmation: Rely on price action combined with volume metrics.
Stop Loss: Set at the 162 pivot.
Profit Targets:
First target at 155 (scale out 50%).
Second target at 150.
Risk Management: After achieving the 155 target, adjust the stop loss to breakeven. Ensure there's significant volume during the break of 155 to anticipate a continued downtrend.
Risk Allocation: 1% of the portfolio, given the prevalent bearish sentiment in the broader market.
SPOT EARNINGS CHART - SPOTIFY TRENDS SPOT chart for earnings. IMO, it probably see a rejection around 152ish and then drops down to buy zone 1. After buy zone 1, the return takes it back around 142-147.
Due to the nature of earnings, we could potentially see the drop to 126 all within the AH
Earnings potentially takes it down all the way to 102.
It's hard to say that earnings pumps, and the reason for that is due to the tech sector. Most tech stocks heading into earnings look like a small pump, followed by a decent sized retracement.
Potentially this, it would allow for some great movements, and trade setups.
SPOTIFY: Enormous upside potential.Spotify opened on a huge price jump following the much better than expected EPS and is approaching the July 19th High (182.65). Technically it turned bullish on its 1D outlook (RSI = 65.875, MACD = 1.600, ADX = 16.057) and a new long term uptrend seems secured as yesterday's rebound started after a clear hit and bounce on the HL trendline.
Price wise it looks like the arc pattern of November 2022-January 2023, which after the Resistance break, reached as high as the 2.0 Fibonacci extension. We have every reason to expect a similar long term rise to Fib 2.0 (TP = 235.00).
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SPOT Spotify Technology Options Ahead of EarningsIf you haven`t sold SPOT here:
Then analyzing the options chain and the chart patterns of SPOT Spotify Technology prior to the earnings report this week,
I would consider purchasing the 155usd strike price in the money Puts with
an expiration date of 2023-11-17,
for a premium of approximately $12.70.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Spotify looking extremely bearish and ready for a shortSpotify has put in a confirmation of an existing level as resistance once again. Along with this it is showing clear bearish divergence and and two clear bearish candlestick patterns. This is exactly what we look for when we try and take a trade.
So the trade is easy, we enter at the price today after a small retrace up, then our stop is above the level and the recent high. Why would we want to be shorting Spotify if it broke through that level anyways??
$SPOT: Deafening 160Looking at Spotify here for a potential head and shoulders-like reversal. I still think the communications sector needs to correct a bit before advancing so I think that could translate to NYSE:SPOT here.
Spotify's New AI Bet Could Be a Game Changer for PodcastingSince 2019, the world's largest audio streaming company, Spotify (SPOT 0.73%), has been pouring money into the podcasting space with hopes of diversifying its business away from purely music streaming. These investments have included acquiring podcast studios, paying for exclusive shows, and even buying entire podcast distribution platforms like Megaphone and Anchor in an effort to bolster its advertising revenue.
However, Spotify's podcast initiatives have drawn plenty of criticism from investors because the company's strategy has continuously shifted and the gross margin has remained negative across its advertising division.
But despite these lackluster results, the company continues to believe there is a large opportunity in the podcasting industry. And last week, Spotify introduced a new program that could have big implications in the long run.
Spotify Going Down in Short TermWeekly Chart of Spotify
In the past 150-55 level has acted as a strong resistance level for Spotify (March, July, December 2019 and in April 2022). Spotify has unsuccessfully tried to cross this level in September this year.
Spotify likely to go down to 140, if not more.
SPOT to dip around $135 to re-test supportSPOT has historically traded very technically. It'll break support/resistance, re-test, then continue on it's way for a while.
After our latest straight-line bull run we've effectively re-tested support, and are now hitting a new long-term resistance line. If this trend continues, we'll dip down to around $135 to the next support level.
SPOT TECH pivoting up LONGTrade idea on the the 2H chart. This is a confirmed reversal with a5 POC line
and 50% retracement in confluence for one target and the pivot high for
the second. I will play this with stock and also a put option for insurance.
90% of the money position in the stock and 10% in the put contract 10DTE.
July Trades (SPOT, account up 5.25%)11th day trade in July is NYSE:SPOT on 7/26/2023.
Account is up 5.25%.
Total return in July is 14.58%.
SPOTiFY: $110 | Bench for Blockchain Limits Bid at sub $30 at par with Audius Theta and STEPN apps or projects
note: when an item utiizes a Celebrity to push evangalize a product
you have 100 days to get out on the way up at euporia levels
easier said than done..
RESET for buy back and next Campaign
SPOT-BULLISH SCENARIOSpotify (SPOT) will announce Q2 earnings, with confirmed price hikes hitting subscription plans in various countries, including the US, UK, Spain, France, New Zealand, Hong Kong, and Peru. The ad-free premium plan will rise by $1 to $10.99, Duo plan by $2 to $14.99, family plan by $1 to $16.99, and the student plan by $1 to $5.99 per month.
Existing subscribers will have a one-month grace period before the new prices take effect. Competitors Apple Music, Amazon Music, and YouTube Music have also raised their prices. Analysts expect the price hikes to contribute to a 5% revenue bump for 2024.
Despite concerns about subscriber numbers, analysts anticipate solid Q2 earnings for Spotify, with improved profitability and a 20% increase in monthly active users year-over-year. Wall Street expects Q2 revenue of 3.21 billion euros, a loss per share of -0.66 euros, and a total of 530 million monthly active users.
Analysts have been positive about Spotify's profitability efforts, and the company's beat on gross margin expectations in the first quarter has boosted sentiment. Spotify aims for a gross margin between 30% and 35% in the long term as it scales its podcasting and ads business.
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SPOT for higher targets?NYSE:SPOT seems poised for higher prices. I'm looking for an initial push towards 165 (where it may pause), then continue towards 175- 180. I may start position with at least 1 month until expiration. Have fun!!!
Sample Trades Where IPM is AppliedInverse pyramid method - a way of tranching wherein “test buy” comes first before entering a significant allocation. Then when the price comes in favor of the trader’s bias, adding positions may apply which value is bigger than the “test buy”.
Risk cancellation 1 Risk cancellation happens when you have an unrealized gain that can cover the risk you set for that particular trade.
It can also be a situation where an open position is on the winning side and just waiting for a trail stop/target profit to be executed.
In those situations, set your stops at breakeven.
Risk cancellation may give you more room to add trades/positions without adding the value at risk of your portfolio.
SPOT short position the RSI indicator is at the overbought conditions which could result in a price drop.
MACD is also showing a decreasing positive momentum and we may get a bearish cross soon.
The move seems to be a little bit overextended therefore the correction may be expected.
entry, stop loss and 2 targets are shown on the chart.
