Spotify Technology stock rose Tuesday after social media firm TikTok announced that it is ending its rival subscription streaming music service.
TikTok confirmed Tuesday that it is shutting down TikTok Music on Nov. 28, Music Business Worldwide reported. TikTok's music service was once seen as a potential "Spotify killer," the publication said.
Now, TikTok has opted to partner with external music streaming services such as Spotify, Apple's Apple Music and Amazon.com's Amazon Music.
TikTok Music currently is live in five regions: Australia, Brazil, Indonesia, Mexico and Singapore.
Spotify Stock Jumps On News
On the stock market today, Spotify stock climbed 3.1% to close at 380.36.
On Thursday, Spotify stock broke out of a six-week consolidation pattern at a buy point of 359.38, according to IBD MarketSurge charts. The 5% chase zone extends to 377.35, based on IBD trading guidelines.
On Tuesday, CFRA Research analyst Kenneth Leon reiterated his buy rating on Spotify stock and raised his price target to 425 from 375.
"We see many parallels with Spotify to video streaming leader Netflix," Leon said in a client note. "And Ted Sarandos, Netflix's co-CEO, sits on Spotify's board of directors."
Spotify stock is on two IBD lists: SwingTrader and Global Leaders.
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