Spotify, long considered the leader in music streaming, has struggled to achieve profitability despite its dominance. However, 2024 marked a turning point for the Swedish streaming giant. For the first time, Spotify reported a half-year profit, gained 26 million new Premium subscribers, and experienced a record surge in visits to close out the year.
While its year-in-review feature faced criticism for lacking innovation, December proved exceptionally strong for Spotify. Data from AltIndex, an alternative data platform that tracks metrics such as web traffic and social media trends, revealed a record-breaking 731 million visits to Spotify’s platform in December alone.
This figure represents a 6% increase compared to December 2023, the previous all-time high. Furthermore, AltIndex’s data shows that Spotify’s monthly web traffic has grown steadily for nearly six straight months, with November being the only exception. Even then, monthly visits slipped by less than 1%, leading to an impressive 20% growth over six months.
Web traffic is a crucial metric for companies like Spotify, reflecting both user engagement and the potential influx of new subscribers. Many first-time users visit the site to sign up for premium plans, and December’s surge underscores Spotify’s ability to attract and retain users, even amidst minor controversies. This trend also mirrors similar patterns identified by AltIndex back in 2022, where rising web traffic and app downloads signaled a strong growth trajectory. Since then, Spotify’s stock has gone up 440%.
Spotify Stock is Up by an Impressive 126% in a Year
A record-breaking number of monthly visits, millions of new Premium subscribers, and the company’s first-ever half-year profit have driven Spotify’s stock price to remarkable heights. At the time of writing, SPOT shares were traded at $459.5. While this marks a 4.9% dip over the past month, the stock still boasts an impressive 126% year-over-year gain.
Goldman Sachs analyst Eric Sheridan recently reaffirmed his “Buy” rating on Spotify’s stock, raising the price target from $490 to $550. According to the AltIndex, PayPal stocks have an AI score of 64 out of 100 and are marked with a buy signal. Also, the stock has been a consistent favorite among investors, as evidenced by positive discussions in leading investment forums and a sentiment score of 84 out of 100 last week.