Last February, Spotify debuted its AI DJ, giving fans a new way to put their own spin on the sound of artificial intelligence. Now Spotify stock has found a spot on IBD Leaderboard as the music streamer tunes up a new breakout.
On Thursday, Spotify got upgraded from the IBD Leaderboard watchlist to get an official spot alongside Meta Platforms, Nvidia and Uber Technologies — all pioneers of their own respective industries.
While earnings have proved elusive for the music service, Spotify stock does top its pioneering peers in one key element related to demand: the up/down volume ratio. Spotify leads with a 1.9 up/down volume ratio.
For this metric, any number above 1.0 points to demand. Spotify currently outpaces Nvidia and Meta, both of which are Magnificent Seven stocks, as well as Uber. The three have ratios of 1.6, 1.5 and 1.2, respectively.
Spotify stock also sports a strong B+ Accumulation/Distribution Rating, which tracks institutional buying over the trailing 13 weeks. That ties Uber, while edging out both Nvidia and Meta, which both earn a B.
Spotify Gets Personal With AI DJ, Partners With Delta
Expanding its ongoing mission to personalize the music experience, Spotify debuted its AI DJ last year. The DJ serves as a personalized AI guide that knows each user and his or her taste in music. As a result, the AI DJ can choose what to play for each listener.
In addition to a curated lineup of music, this feature can deliver commentary around the recommended tracks and artists in what Spotify calls "a stunningly realistic voice."
This month, Spotify and Delta Air Lines teamed up to announce a new and free in-flight docuseries entitled "The Passport Sessions."
The first episode, called "From Miami to Medellín." features songwriter Andy Clay and Venezuelan-born American songwriter Maye flying from Florida to Colombia to meet and collaborate with urbano artists Juan Duque and Aria Vega.
Spotify Stock In Buy Range As Turnaround Gets In Tune
Launched in 2008, Spotify listeners now have access to more than 100 million tracks, 5 million podcast titles, and 350,000 audiobooks. Its audio streaming subscription service says it serves more than 574 million users, including 226 million subscribers across 184 markets.
In the third quarter of last year, Spotify posted a surprise profit. Now fourth-quarter numbers await, with its performance report due Feb. 6 before the market open.
Sales growth has accelerated for four straight quarters, rising to roughly $3.6 billion in Q3, a 19% gain over the prior-year quarter.
On the earnings front, Wall Street expects Spotify to shift from a loss of $2.76 a share in 2023 to a profit of $2.61 a share in 2024.
Spotify stock remains in a buy range after clearing a 202.88 entry point in a third-stage flat base. Such later-stage patterns entail more risk, with an upcoming earnings report also calling for caution. The buy zone extends to 213.02.
Meanwhile, Nvidia, Meta and Uber continue to touch or tease record highs.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
