Spotify stock hit a 52-week high earlier this week
Spotify Technology SA (NYSE:SPOT) stock is heading for its best week since Sept. 1 thanks to two notable headlines. This morning, the streaming giant revealed today Chief Financial Officer Paul Vogel will leave his post in March. Vogel cashed in $9.3 million in shares after the streaming giant said earlier this week it will cut 17% of its workforce, or about 1,500 jobs. The company has struggled to achieve profitability due to higher costs and slower economic growth, but is still benefiting from subscriber and revenue gains.
Spotify stock is up 0.5% to trade at $197 at last check, and jumped to a 52-week high of $202.61 on Wednesday, Dec. 6 ,after announcing the layoffs. The 10-day moving average has been guiding the shares higher since late October, contributing to their impressive 147.9% lead so far this year.
Bull notes could keep the wind at the equity’s back, considering 40% of the brokerages in coverage maintain tepid “hold” stances. If that doesn’t seem contrarian enough, SPOT’s 12-month consensus price target of $197.84 is a 0.1% premium of its current perch, so price-target hikes could be in the works as 2023 winds down.
Now looks like an opportune time to weigh on the stock’s next moves with options, which are affordably priced. SPOT’s Schaeffer’s Volatility Index (SVI) of 34% sits in the relatively low 13th percentile of readings from the past year, suggesting options traders are pricing in lower-than-usual volatility expectations.
Image and article originally from www.schaeffersresearch.com. Read the original article here.