Spotify (SPOT) recently launched a new live interactive audio feature, called Greenroom, to provide content creators and fans unique ways of connecting. The new offering provides creators and fans an opportunity to connect more deeply and meaningfully.
Greenroom will be available in a new form on iOS and Android and in over 135 markets worldwide. The audio feature will allow users to host and participate in live rooms. It will also come with recording capabilities that can be used to complement on-demand content with live conversations.
Additionally, the company will continue to upgrade the audio feature as it learns more of what creators and listeners want for their live audio experience. The music streaming company also intends to offer new programming to the platform. The programming will be spread across music, culture, and entertainment. (See Spotify stock chart on TipRanks)
The unveiling of the new feature follows the acquisition of Betty Labs, creator of Locker Room, which has allowed Spotify to expand its capabilities.
“We believe Spotify has an opportunity not only to enable live broadcasts, but to aid discovery, drive consumption, and accelerate growth of the live category overall. The app’s unveiling is our opportunity to begin laying the foundation for the exciting roster of content and capabilities Spotify has in store in our venture into live audio,” the company said in a press release.
The music streaming company also plans to launch the Spotify Creator Fund, which will allow creators to monetize their work.
Evercore ISI analyst Mark Mahaney has reiterated a Buy rating on the stock with a $375 price target, implying 54.9% upside potential to current levels.
According to the analyst, Spotify expects to have 1 billion users by 2025 as touted by CEO Daniel Ek, which is an “aggressive” goal. If the company achieves 1 billion monthly active users by 2025, the analyst expects its enterprise value to more than double over the next three years.
Consensus among analysts is a Moderate Buy based on 10 Buys and 6 Holds. The average analyst Spotify price target of $341.15 implies 40.7% upside potential to current levels.
SPOT scores 8 out of 10 on TipRanks’ Smart Score rating system, indicating the stock has strong potential to outperform market expectations.
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