Spotify S shares: The cops will love to hear that! ()

Spotify, a company from the “telecommunications services” market, is currently (as of 7:58 p.m.) listed at USD 123.13, up sharply (+1.62 percent).

We analyzed Spotify’s prospects based on 5 major categories. The stock receives a partial rating for each category. In an overall view, the results lead to the classification as “Buy”, “Hold” or “Sell”.

1. Analyst assessment: Analysts currently rate the Spotify share as “Buy”. This rating is made up of 4 “buy”, 3 “hold” and 0 “sell” ratings that were submitted in the last twelve months. In more recent reports, analysts came to the same conclusion on average – the bottom line is the rating for the Spotify security from last month “Buy” (1 Buy, 0 Hold, 0 Sell). Based on the analysts’ average price forecast ($172.43), the stock has an upside potential of 42.3 percent (from the last close price, $121.17), which corresponds to a “buy” recommendation. Overall, Spotify receives a “Buy” rating for this section of the analysis.

2. Relative Strength Index: For stocks, technical analysis also looks at the ratio of up and down movements in a price over time and plots this for a 7-day period in the Relative Strength Index. Based on this so-called RSI, Spotify is currently oversold at 12.81. Therefore, this signal is rated Buy. Extending the relative movement to 25 days (RSI25) gives the stock a reading of 10.3. This is considered a signal that the stock is considered oversold. Accordingly, the rating on this basis is “Buy”. Overall, this results in the classification “Buy” for the RSI.

3. Sentiment and buzz: Spotify has seen a clear change in sentiment towards the positive in recent weeks. A change in the mood occurs when the mass of market participants in the social media, which form the basis of this evaluation, has a tendency towards particularly positive or negative topics. Since Spotify registered positive abnormalities in this regard, we rate this criterion with “Buy”. In terms of the strength of the discussion, or in other words, the change in the number of posts, a decrease in attention to the company was registered. We reward this with a “Sell” rating. In summary, Spotify gets a “Buy” for this level.

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