Spotify Technology is the IBD Stock Of The Day as the audio entertainment giant broadens beyond music, podcasts and audiobooks and into self-help and educational courses. Spotify stock is flirting with a buy point.
The Stockholm-based company on Tuesday announced an initiative to provide self-improvement courses, starting with a venture with fitness brand Adidas.
"Whether you want to discover the benefits of meditation, hone a new skill, or progress your career, you can learn it through courses on Spotify," the company said in a blog post. "Courses cover a range of topics, including music, business, and lifestyle, so you can explore your passions and ambitions in a new way, at your own pace, and on your own time."
TechCrunch reported that Spotify has been piloting its educational courses initiative in the U.K. since last year.
In morning trades on the stock market today, Spotify stock rose 1.2% to close at 493.56. Earlier in the session, it hit a record high of 510.84.
Spotify stock is flirting with a buy point of 506.47 from a shallow cup base, according to IBD MarketSurge charts. Aggressive investors could have bought Spotify stock above 500.86 as it cleared short-term highs, based on IBD analysis.
In a bullish sign, Spotify's relative strength line is hitting new highs as it outperforms the broad market.
The next major catalyst for Spotify stock is the company's fourth-quarter earnings report on Feb. 4.
Analysts polled by FactSet expect Spotify to earn $2.07 a share on sales of $4.32 billion in the December quarter. In the year-earlier period, Spotify lost 39 cents a share on sales of $3.94 billion.
Further, analysts predict that Spotify will add 7.9 million premium subscribers for a total of 259.9 million worldwide.
Wall Street also is modeling 664 million monthly active users in the fourth quarter, vs. 640 million in the third quarter. Spotify offers a free, ad-supported service in addition to its commercial-free subscription service.
Last week, Spotify stock received several price-target hikes from Wall Street analysts. The analysts noted Spotify's improved profitability and strong revenue growth.
Spotify stock is on three IBD lists: Leaderboard, SwingTrader and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
