AltIndex Saw It Coming – Spotify Stocks Soar Over 30% Following Our Forecast
February 4, 3:00 pm
Spotify's (SPOT) robust performance in their latest earnings report surprised many, with the streaming giant adding an impressive 11 million premium subscribers, surpassing analysts' expectations by a significant margin. This achievement has propelled the stock up by 13.2%, closing at a striking price of $621.77. With a total of 263 million subscribers worldwide and monthly active users climbing to 675 million, Spotify's growth trajectory remains formidable. For the upcoming quarter, the company projects revenue to hit $4.34 billion, subtly edging past consensus estimates.
Alternative data shows the way
However, this success was anticipated by AltIndex, thanks to our analysis of alternative data metrics, particularly web traffic. Back in January, we highlighted and wrote an article about Spotify's record-breaking 731 million visitors to the the company's webpage, the most in the company's history. This surge in web traffic not only underscored the platform's expanding user base but also reflected a broader interest that could translate into increased subscription numbers.
The connection between Spotify's web traffic and its subscriber growth is no coincidence. Web traffic often serves as a reliable proxy for a company's growth, indicating both heightened user engagement and the potential for new premium subscriptions. Even amid minor controversies, such as criticism over its year-end review feature, Spotify managed to attract more users, demonstrating its resilience and appeal.
440% gains since our first growth signal
Our long-term tracking and analysis at AltIndex revealed early signs that Spotify was on an upward trend. From a significant rise in web traffic and app downloads to a bullish sentiment among employees and growing social media presence, all indicators we've monitored suggested a strong performance ahead. Indeed, since our analysis in 2022, Spotify's stock has skyrocketed by 440%, underscoring the effectiveness of alternative data in predicting stock movements.
Investors should take note of these trends. The correlation between Spotify's increasing web traffic and its financial outcomes highlights the importance of alternative data in investment decision-making. It provides a more nuanced view of a company's potential than traditional financial metrics alone.
The take-away
As Spotify continues to innovate and expand its market presence, the insights gained from alternative data sources like web traffic will be invaluable. For those looking to invest, the link between Spotify's user engagement metrics and its financial performance suggests that Spotify remains a compelling growth stock. At AltIndex, we remain committed to leveraging such alternative data insights to find investment opportunities, providing our members with actionable insights that go beyond conventional analysis.
Visit our stock screener to find more companies that have seen an increase in their web traffic.
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