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3 minutes ago
- Yahoo
Spotify Stock Bounces Back from Its Post-Earnings Plunge, But is SPOT Stock a Buy Right Now?
Spotify Technology S.A. (SPOT) shares declined by more than 11% last Tuesday, marking the company's worst performance on a single day since July 2023. The decline was preceded by a disappointing Q2 earnings report that fell short of Wall Street forecasts on the top and bottom lines, and was coupled with subdued guidance for the next quarter. The news left many investors surprised, as the platform's growth continues in the area of audiobooks and AI-driven music discovery tools. However, the broader technology industry remains healthy. Big names like Meta (META), Microsoft (MSFT), and eBay (EBAY) have reported robust earnings, demonstrating ongoing consumption behaviors online. More News from Barchart Find Winning Momentum Trades With This Moving Average Stock Screener Tariffs, Earnings and Other Can't Miss Items this Week This Blue-Chip Dividend Stock Is Stuck in the Tariff Crosshairs. Can Cost Cuts Save the Day? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Today, meanwhile, SPOT stock is on the rebound, up 6% intraday after announcing plans to hike prices in select global markets starting in September. Plus, Phillips Capital upgraded Spotify to 'Neutral' from 'Reduce' in the wake of its post-earnings retreat. Is now the time to consider adding Spotify shares? Here's a closer look. About Spotify (SPOT) Stock Spotify Technology S.A. (SPOT) is the world's leading audio streaming company based in Stockholm, Sweden. It covers music, podcasting, as well as audiobooks, with paid subscription and advertisement-driven streaming as sources of earned revenues. The market capitalization of Spotify is $128.38 billion. SPOT shares have surged 100.7% in the past 52-week span, handily outgaining the S&P 500 Index's ($SPX) ~18% gain in that same period. The shares have, however, retraced by about 15% off their June highs at $785. Even following the pullback, one of the primary points of contention for the stock is its valuation. SPOT is valued at roughly 98 times forward adjusted earnings with a 6.46 price-to-sales ratio, much higher than most of its peers. Even if those multiples may be a vote of confidence on Spotify's long-term growth and scale narrative, they don't do much to alleviate fears of whether the company is already priced for perfection after the year of frenzied run-up. Spotify is a growth stock that pays no dividend currently. The company's strategy remains on reinvestment for future development and not capital return. Spotify Falls Short on Earnings Spotify generated Q2 2025 revenues of €4.19 billion, below the estimated €4.26 billion. More concerning was the unexpected net loss of €86 million, or €0.42 per share, versus the estimated €1.90 in earnings on the Street. The poor showing was driven by higher personnel and marketing expenses, as well as €115 million of so-called 'social charges,' which are payroll taxes on equity compensation tied to the recent rally in its shares. Management predicted Q3 2025 revenue of €4.2 billion, far short of consensus views of €4.47 billion. The firm noted a 490-basis-point forex headwind and macro volatility as key reasons behind the conservative guide. However, user growth remains healthy. Monthly users grew 11% year-over-year to 696 million, while paying subscribers grew 12% to 276 million. Spotify is guiding for 710 million users and 281 million paying subscribers by the end of Q3. There was more interaction with brand-new functionality in the quarter, like its AI-powered DJ - whose use more than doubled year-over-year - as well as playing of audiobooks, where usage surged 35% across America, Great Britain, and Australia. CEO Daniel Ek did criticize execution failures, but believes in the long-term plan: 'While I'm unhappy with where we are today, I remain confident in the ambitions we laid out for this business, and we're working quickly to ensure we're on the right path.' Spotify also revealed a $1 billion extension of the share buyback program, demonstrating optimism in the stock's intrinsic value despite near-term volatility in earnings. What Do Analysts Expect for Spotify Stock? Currently, 32 analysts cover SPOT stock, and rate it with a 'Moderate Buy' consensus. Spotify's mean price target is $738.12, indicating 10.7% expected additional upside from current levels. The top price target on the Street is $900, and the most negative estimate foresees the risk of declining as far as $484 - a reflection of the volatility and valuation sensitivity of the company. On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 minutes ago
- Yahoo
Meta Stock Could Soar Past $1,000 Thanks to AI – Time to Buy?
Meta Platforms (META) is aggressively investing in artificial intelligence (AI). The company's management recently said that 2025 capital expenditures could range between $66 and $72 billion. That's roughly $30 billion more than last year, and a large chunk of this capital would go towards rapidly scaling its AI infrastructure. Naturally, these significant investments raise concerns. Can Meta maintain healthy profit margins in the short term? And will these hefty investments translate into long-term gains? More News from Barchart Find Winning Momentum Trades With This Moving Average Stock Screener Tariffs, Earnings and Other Can't Miss Items this Week This Blue-Chip Dividend Stock Is Stuck in the Tariff Crosshairs. Can Cost Cuts Save the Day? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Despite those concerns, early signs suggest that Meta's AI strategy is already beginning to pay off. Improvements in user engagement and stronger monetization, both fueled in part by AI innovations, are helping to drive optimism about the company's long-term outlook. Notably, at least one Wall Street analyst expects Meta stock to top $1,000 over the next 12 months. To be precise, the Street-high price target for Meta stock is now $1,086, representing a potential upside of around 41.5% from current levels. AI is Meta's Rocket Fuel AI is emerging as the catalyst that's helping Meta to enhance its user engagement, improve content discovery, boost ad performance, and drive overall revenue growth. Notably, the number of daily active users (DAUs) continues to rise across its platforms, including Facebook, Instagram, and WhatsApp. In fact, in June, over 3.4 billion people used at least one of Meta's apps every day. Across Facebook, Instagram, and WhatsApp, AI is increasingly fine-tuned to deliver content that users find both relevant and compelling. These improvements are translating into more time spent on the platforms. In the second quarter, time spent watching videos on Instagram surged over 20% year-over-year globally. Facebook saw similarly strong growth, especially in the U.S., where video engagement also climbed by more than 20%. These gains reflect Meta's ongoing improvements in its recommendation algorithms, which continue to evolve and become more responsive to users' real-time interests. Thanks to these initiatives, Meta saw a 5% jump in average time spent on Facebook and a 6% increase on Instagram in just one quarter. Further, Meta AI is already reaching over a billion monthly users, and the focus is shifting toward creating deeper, more personalized experiences, which are expected to drive engagement levels higher. AI is also supercharging Meta's advertising business. In Q2, the company's total Family of Apps revenue hit $47.1 billion, up 22% year-over-year. Advertising revenue specifically came in at $46.6 billion, up 21%. Growth was strongest in Europe and the rest of the world region, where ad revenue climbed 24% and 23% respectively, with North America and Asia-Pacific also posting solid gains. Meta's upgraded recommendation models are now live on more ad surfaces, driving around 5% more ad conversions on Instagram and 3% on Facebook. More advertisers are also tapping into Meta's generative AI tools for ad creative, with a significant portion of ad revenue now coming from campaigns that utilize its Gen AI features. Meta is gaining strong traction with its Advantage+ suite of AI-powered tools. Its Advantage+ Creative suite is seeing growing adoption of generative AI features. Nearly 2 million advertisers are now using its video generation tools—Image Animation and Video Expansion. Meta is also seeing promising results from its AI-driven text generation tools, which continue to improve as new features are added. Overall, by enhancing user engagement, improving content discovery, and boosting ad performance, AI is driving significant gains across Meta's platforms. With billions of users and strong momentum in both user activity and advertising revenue, Meta's strategic focus on AI is paying off and will drive its long-term growth. Is Meta Stock a Buy Now? Meta stock has gained over 56% in the past year. Despite the significant appreciation in its price, Meta's aggressive investment in AI is becoming the engine behind its next phase of growth. From higher user engagement and improved ad performance to the rapid adoption of its AI-powered tools, the early results are promising. While the scale of spending raises short-term concerns, the long-term upside could be substantial if current trends continue. Wall Street is optimistic and maintains a 'Strong Buy' consensus rating on Meta stock, reflecting confidence in the social media giant's growth story, particularly as it integrates AI into its products. On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
3 minutes ago
- Yahoo
What Determines the Price of Bitcoin? (Hint: It's Not Just Whales and Elon)
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Bitcoin's price doesn't follow traditional logic. There are no earnings reports, balance sheets, or CEO forecasts to guide the market. Instead, its value lives and breathes through one of the oldest forces in finance: supply and demand. When demand outpaces available supply, Bitcoin soars. When demand wanes or holders rush to sell, the price can fall just as dramatically. That's why Bitcoin's price often swings with far more volatility than traditional investments — sometimes shifting by double-digit percentages in a single week. Still, over the last decade, Bitcoin has proven itself as one of the best-performing assets on earth, rising from pennies to over $117,000 at its peak. So it's clear that Bitcoin isn't just surviving; it's establishing itself as a long-term fixture in modern finance. But to understand why Bitcoin moves the way it does, you need to understand what actually drives its price day to day — and why it remains so difficult to predict. Scarcity and Speculation Bitcoin is often compared to commodities like gold and silver, and for good reason. Unlike a company stock, it doesn't produce anything. It doesn't generate revenue. Its value is derived almost entirely from what people believe it's worth — and what they're willing to pay for it. But it's not just a popularity contest. Like gold, Bitcoin is scarce. There will only ever be 21 million coins, and more than 19 million have already been mined. That built-in scarcity means that as demand increases, the price almost always follows. Bitcoin's supply schedule is hard-coded into its protocol: roughly every 10 minutes, 6.25 new Bitcoins are minted — a number that will halve again in 2025, making the asset even more scarce. Combine that with growing global demand, and you start to see why Bitcoin can climb so quickly — and crash just as fast when sentiment flips. Don't Miss: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase. A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. Market Supply: What's Actually Available to Buy Supply, in the Bitcoin world, is more complicated than it looks. While 19 million coins may be in existence, not all of them are up for sale. Some are being held long-term. Others are permanently lost — sent to wallets that haven't moved in over five years. Research from Chainalysis suggests that up to 20% of all Bitcoin could be lost forever, which significantly reduces the actual circulating supply. So when people talk about Bitcoin's scarcity, they're not just referring to its eventual 21 million cap — they're referring to how little of it is actively being traded at any given moment. That limited float means that when big buy orders come in, prices can jump quickly. But it also means that when major holders — often called "whales" — decide to sell, the impact can be just as dramatic in the other direction. Market Demand: What Drives People to Buy Bitcoin If supply is relatively fixed, demand is where all the action happens. Demand can surge for dozens of reasons. Sometimes it's driven by macroeconomic fears, like inflation or currency devaluation. In countries experiencing runaway inflation, Bitcoin is seen as a lifeline — a way to escape the eroding value of the local currency. In other cases, it's driven by optimism: belief in Bitcoin as the future of finance, a hedge against central bank policies, or simply a better form of digital money. Media coverage plays a major role too. When Bitcoin makes headlines, people pile in. When prices rise, people don't want to miss out — and that FOMO (fear of missing out) can drive waves of new buyers into the market, further pushing prices up. But the same dynamic works in reverse. Negative headlines, regulatory crackdowns, or even a single tweet from a public figure can send prices tumbling as sentiment shifts. Miners and Selling Pressure Bitcoin miners play a unique role in the supply equation. They're the ones securing the network and earning newly minted Bitcoin in the process. But mining isn't free. It requires expensive hardware and massive electricity costs. That means miners often sell a portion of their Bitcoin to cover expenses, creating constant selling pressure in the market. When electricity costs are low and Bitcoin prices are high, miners may hold onto more coins. But when prices drop or energy becomes expensive, they tend to sell quickly — sometimes in large amounts. These sales don't just reflect supply and demand; they can help trigger broader market moves. And with the next Bitcoin halving coming in 2025, those miner dynamics could shift again, altering the pace at which new coins enter the market and influencing how aggressively miners need to sell to stay afloat. Rising Competition From Other Cryptos Bitcoin may be the original cryptocurrency, but it's far from the only game in town. Today, investors have thousands of altcoins to choose from — each offering different technologies, use cases, and growth potential. As new tokens gain popularity, some investors sell Bitcoin to buy into the latest trend. Exchanges that allow direct swaps between altcoins and Bitcoin make that process seamless — but also create sell pressure for Bitcoin when those swaps occur. Even if Bitcoin is still seen as the most stable or "blue chip" crypto asset, the growing ecosystem means more competition for attention, capital, and demand. When capital flows toward newer, flashier altcoins, Bitcoin's price can temporarily stagnate or dip, especially during altcoin bull runs. Trending Now: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100. $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. The Impact of Regulation and Institutional Sentiment Government policies can influence demand more than almost anything else. When regulators crack down on crypto, demand often plummets. But when countries embrace crypto innovation — or when financial giants like BlackRock, Fidelity, or PayPal get involved — it legitimizes the space and brings new money in. Regulation is a double-edged sword: it can deter retail investors worried about taxes or surveillance, but it can also open the door for large institutions that require legal clarity to get involved. As we've seen with spot Bitcoin ETFs and major corporate treasury allocations, a single regulatory green light can send prices soaring — just as quickly as a regulatory threat can drag them down. Who Actually Moves the Market? No single person controls Bitcoin's price — not even its pseudonymous creator, Satoshi Nakamoto, who holds over 1 million untouched coins. But the market is still highly influenced by a few big players. "Whales," or individuals and institutions holding tens of thousands of Bitcoin, can impact price dramatically when they make a move. That's why analysts pay attention to wallet flows, on-chain activity, and large exchange deposits. Even public figures like Elon Musk have sent Bitcoin prices surging or plummeting with a single tweet. Despite being decentralized, Bitcoin's market behavior still reflects human psychology — and when powerful voices speak, the crowd listens. Why Bitcoin Crashes (and Bounces Back) Bitcoin crashes are a feature, not a bug. Time and time again, the asset has dropped 80–90% during bear markets — only to come roaring back to new all-time highs later. These violent downturns are the result of overleveraged traders, panicked retail selling, and media-driven fear. But each crash clears out speculation and resets the market for long-term growth. The reason Bitcoin keeps bouncing back? Its core value proposition hasn't changed. It's still scarce, decentralized, and globally accessible. And as long as those fundamentals remain intact, the asset will continue to attract new believers — especially in times of economic uncertainty or distrust in traditional systems. Why Bitcoin Has Value at All At the end of the day, Bitcoin has value because people agree it does. That might sound flimsy — but it's no different than fiat currencies or even gold. The U.S. dollar isn't backed by gold or any physical asset. It has value because people trust it. Gold has value because we've collectively agreed it does. Bitcoin fits into that same mold — but with some modern advantages. It doesn't require storage space. It can be sent anywhere on earth instantly. And unlike any other commodity, it has a provably finite supply. No matter how high demand goes, there will never be more than 21 million Bitcoin. That built-in scarcity, combined with decentralization and global accessibility, is what many see as Bitcoin's greatest strength. It's why investors believe Bitcoin could one day rival — or even replace — gold as the world's dominant store of value. See Next: Grow your IRA or 401(k) with Crypto – unlock the power of alternative investments including a Crypto IRA within your retirement account. Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies. This article What Determines the Price of Bitcoin? (Hint: It's Not Just Whales and Elon) originally appeared on Sign in to access your portfolio
