Shares of Spotify rose as high as $317.00, up 6.8% from the previous day’s closing price, after the company announced Monday (June 3) that it will raise subscription prices in the United States.
The stock closed on Monday at $310.80, up 4.7%, bringing its year-to-date gain to 65.
4%. Price increases have done wonders for Spotify’s share price this year. The stock also jumped 8.
2% on April 3 after reports surfaced that the company would raise prices in the United Kingdom and Australia, among other markets. Spotify’s 2023 price increases fueled the company’s first-quarter results and drove the stock to its 52-week high of $319.30 on April 23.
Revenue reached a record 3.6 billion euros ($3.9 billion), up 20%, and gross margin improved to 27.
6% from 25.2% in the prior-year period. Investors weren’t sure about the impact of price increases on Spotify’s business, however.
After Spotify announced its first broad price increase on July 24, 2023, its share price plummeted 14.3% to $140.38 — putting its stock at less than half the current price.
Spotify had not instituted across-the-board price increases since its launch, and investors may have been wary about subscribers fleeing for free alternatives. !function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.
data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r
length;r++)if(e[r].contentWindow===a.source){var i=a.
data["da.
