Spotify Technology Stock (NYSE:SPOT), Trade Ideas

Spotify Technology

Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 602 million monthly active users at the end of 2023. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 86% and 14% of Spotify's 2023 total revenue, respectively.

Spotify DJ

News

Social Media

Tech

Media

AAPL

SPOT

Apple has blocked Spotify Technology SA&#39;s latest iOS app update in the EU for not complying with new App Store rules regarding external purchase links.

Spotify Tries To Push iOS Update In EU Again, Gets Rebuffed By Apple Over App Store Terms

Spotify Photo by esthermm on Shutterstock

Analyst Color

Equities

Eurozone

Price Target

Reiteration

Analyst Ratings

Trading Ideas

SOCL

Spotify reported strong Q1 earnings with revenue of $3.95B, beating expectations. Analysts raise price target and predict growth in 2024.

Spotify Stock Sheds All Gains After Q1 Earnings, But Analysts Are Impressed With the Performance

Spotify logo with phone

Earnings

Markets

Spotify Analysts Boost Their Forecasts After Q1 Earnings

Spotify Technology SA

Spot Coffee (Canada) Ltd

SPOTLITE360 IOT SOLUTION by SpotLite360 IOT Solutions Inc.

SpotLite360 IOT Solutions Inc

SPOTLIGHT HOMES INC by Spotlight Homes, Inc.

Spotlight Homes Inc

SPOTLIGHT CAP HLDGS INC by Spotlight Capital Holdings, Inc.

spotlight Capital Holdings Inc

<p>Deep-pocketed investors have adopted a bearish approach towards Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in SPOT usually suggests something big is about to happen.</p>
<p>We gleaned this information from our observations today when Benzinga's options scanner highlighted 9 extraordinary options activities for Spotify Technology. This level of activity is out of the ordinary.</p>
<p>The general mood among these heavyweight investors is divided, with 22% leaning bullish and 44% bearish. Among these notable options, 3 are puts, totaling $224,720, and 6 are calls, amounting to $271,757.</p>
<h3>Projected Price Targets</h3>
<p>After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $280.0 and $310.0 for Spotify Technology, spanning the last three months.</p>
<h3>Analyzing Volume &amp; Open Interest</h3>
<p>Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Spotify Technology's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Spotify Technology's whale trades within a strike price range from $280.0 to $310.0 in the last 30 days. </p>
<h3>Spotify Technology 30-Day Option Volume &amp; Interest Snapshot</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1714140134_0.png" alt="Options Call Chart" /></p>
<h3>Biggest Options Spotted:</h3>
<p>
<table>
<thead>
<tr>
<th><strong>Symbol</strong></th>
<th><strong>PUT/CALL</strong></th>
<th><strong>Trade Type</strong></th>
<th><strong>Sentiment</strong></th>
<th><strong>Exp. Date</strong></th>
<th><strong>Ask</strong></th>
<th><strong>Bid</strong></th>
<th><strong>Price</strong></th>
<th><strong>Strike Price</strong></th>
<th><strong>Total Trade Price</strong></th>
<th><strong>Open Interest</strong></th>
<th style="text-align: right;"><strong>Volume</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td>SPOT</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>05/17/24</td>
<td>$8.9</td>
<td>$7.55</td>
<td>$8.4</td>
<td>$285.00</td>
<td>$132.7K</td>
<td>94</td>
<td style="text-align: right;">23</td>
</tr>
<tr>
<td>SPOT</td>
<td>CALL</td>
<td>TRADE</td>
<td>NEUTRAL</td>
<td>06/21/24</td>
<td>$8.3</td>
<td>$7.05</td>
<td>$7.61</td>
<td>$310.00</td>
<td>$73.8K</td>
<td>1.7K</td>
<td style="text-align: right;">5</td>
</tr>
<tr>
<td>SPOT</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>05/17/24</td>
<td>$15.4</td>
<td>$14.6</td>
<td>$15.4</td>
<td>$280.00</td>
<td>$72.3K</td>
<td>359</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>SPOT</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>05/03/24</td>
<td>$3.6</td>
<td>$3.3</td>
<td>$3.3</td>
<td>$280.00</td>
<td>$66.0K</td>
<td>537</td>
<td style="text-align: right;">16</td>
</tr>
<tr>
<td>SPOT</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>06/21/24</td>
<td>$22.1</td>
<td>$20.95</td>
<td>$20.95</td>
<td>$280.00</td>
<td>$41.9K</td>
<td>433</td>
<td style="text-align: right;">15</td>
</tr>
</tbody>
</table>
</p>
<h3>About Spotify Technology</h3>
<p>Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 602 million monthly active users at the end of 2023. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 86% and 14% of Spotify's 2023 total revenue, respectively.</p>
<h3>Current Position of Spotify Technology</h3>
<ul>
<li>With a trading volume of 167,191, the price of SPOT is down by -0.67%, reaching $287.08.</li>
<li>Current RSI values indicate that the stock is may be approaching overbought.</li>
<li>Next earnings report is scheduled for 88 days from now.</li>
</ul>
<h3>What The Experts Say On Spotify Technology</h3>
<p>Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $338.0.</p>
<ul>
<li>Maintaining their stance, an analyst from Guggenheim continues to hold a Buy rating for Spotify Technology, targeting a price of $350. </li>
<li>An analyst from Loop Capital persists with their Hold rating on Spotify Technology, maintaining a target price of $300. </li>
<li>Consistent in their evaluation, an analyst from Pivotal Research keeps a Buy rating on Spotify Technology with a target price of $400. </li>
<li>An analyst from Loop Capital persists with their Hold rating on Spotify Technology, maintaining a target price of $250. </li>
<li>Consistent in their evaluation, an analyst from Pivotal Research keeps a Buy rating on Spotify Technology with a target price of $390. </li>
</ul>
<p>Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.</p>
<p>If you want to stay updated on the latest options trades for Spotify Technology, <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> gives you real-time options trades alerts.</p>


Options

A Closer Look at Spotify Technology's Options Market Dynamics

<p><strong>Spotify Technology SA</strong>&#8216;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) second attempt to update its <strong>iOS</strong> app in the EU has been thwarted by <strong>Apple Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) due to non-compliance with its <strong>App Store</strong> rules.</p>
<p><strong>What Happened</strong>: The update for <a href="https://www.benzinga.com/markets/equities/24/03/37454551/apple-hit-with-a-1-95b-fine-in-eu-in-spotify-antitrust-case">Spotify&#8217;s app in the App Store</a> has been put on hold as the streaming service failed to adhere to the regulations allowing links to external sites for purchases, <a href="https://appleinsider.com/articles/24/04/24/spotify-second-ios-app-update-attempt-in-eu-fails-to-pass-app-store-review">reported</a> AppleInsider on Wednesday.</p>
<p>Apple has introduced new rules for developers&nbsp;to <a href="https://www.benzinga.com/news/24/03/37507425/from-search-to-flights-google-tweaks-everything-for-eus-digital-markets-act">comply with EU legislation</a>, such as the <strong>Digital Markets Act</strong>. However, not all apps have followed these guidelines.</p>
<p>Apple has&nbsp;created a Music Streaming Services&nbsp;Entitlement for the EEA storefronts, which&nbsp;allows streaming services to use&nbsp;external links, buttons, and calls&nbsp;to action to direct users to a developer&#8217;s website for purchases&nbsp;outside of Apple&#8217;s In-App Purchase&nbsp;mechanism.</p>
<p><em>See Also: <a href="https://www.benzinga.com/news/24/04/38368777/apple-planning-soccer-broadcasting-foray-with-fifa-after-major-league-rights-success-report">Apple Planning Soccer Broadcasting Foray With FIFA After Major League Rights Success: Report</a></em></p>
<p>The App Review team at Apple sent an email to Spotify, stating&nbsp;that version 8.9.33 of Spotify&#8217;s&nbsp;app was stopped from being published to the App Store. This version of the app was designed&nbsp;for the <strong>European Economic Area</strong>&nbsp;or EEA storefronts.</p>
<p>&#8220;We note that your current submission includes a call to action to purchase a Spotify subscription on your website. As such, you must accept the terms of the Music Streaming Services Entitlement (EEA) and include the entitlement profile in your app for submission,&#8221; the email read. </p>
<p>Adding, &#8220;To be clear, this entitlement is required even if your app does not include an external link (nor does it require that you offer an external link). We will, however, approve version 8.9.33 after you accept the terms of the Music Streaming Services Entitlement (EEA) and resubmit it for review.&#8221;</p>
<p><em>Subscribe to the&nbsp;</em><a href="https://bztechtrends.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener"><em>Benzinga Tech Trends newsletter</em></a><em>&nbsp;to get all the latest tech developments delivered to your inbox.</em></p>
<p>It is unclear if the&nbsp;app will be blocked in&nbsp;other territories, but since it&nbsp;is an EEA-specific issue, it&nbsp;should be allowed elsewhere.</p>
<p><strong>Why It Matters</strong>: This development comes after Spotify&#8217;s&nbsp;<a href="https://www.benzinga.com/24/04/38388246/spotifys-first-quarter-tells-a-story-of-record-profit-and-an-epic-win">record-breaking first quarter</a>&nbsp;in 2024, where the company reported a 20% year-over-year increase in revenue to 3.64 billion euros. This was attributed to efficient cost-cutting initiatives that also brought significant margin improvements.</p>
<p>Spotify&#8217;s stock, however, <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38414644/spotify-stock-sheds-all-gains-after-q1-earnings-but-analysts-are-impressed-with-the">shed all its gains</a> after the first quarter earnings report, but analysts were still impressed with the company&#8217;s performance. <strong>J.P. Morgan</strong> analyst <strong>Doug Anmuth</strong> maintained Spotify with an Overweight and raised the price target from $320 to $365.</p>
<p><em>Photo via Shutterstock</em></p>
<p><em>Check out more of Benzinga's Consumer Tech coverage by&nbsp;<a href="https://www.benzinga.com/topic/consumer-tech" target="_blank" rel="noreferrer noopener">following this link</a>.</em></p>
<p><em>Read Next:&nbsp;<a href="https://www.benzinga.com/news/24/04/38357333/elon-musk-reacts-to-tucker-carlson-saying-theres-ton-of-evidence-that-aliens-live-among-us-with-6000?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk Reacts To Tucker Carlson Saying There&#8217;s &#8216;Ton Of Evidence&#8217; That Aliens Live Among Us: &#8216;With 6000 Satellites Orbiting Earth, I Think I Would Know&#8217;</a></em></p>
<p><strong><em>Disclaimer</em></strong><em>: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.</em></p>


<p>On Tuesday,<strong>&nbsp;Spotify Technology SA</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>)&nbsp;reported fiscal first-quarter 2024 revenue of $3.95 billion (3.64 billion euros), up 20% year-on-year, beating the consensus of&nbsp;$3.85 billion.&nbsp;EPS of $1.05 (97 cents) beat&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38377741/music-giant-spotifys-q1-surprise-investors-cheer-premium-subscriber-growth-and-profit-bump" rel="noreferrer noopener">the&nbsp;consensus of $0.70</a>. Analysts offered their takes on the stock.</p>
<p><strong>J.P. Morgan</strong>&nbsp;analyst Doug Anmuth maintained Spotify with an Overweight and raised the price target from&nbsp;$320&nbsp;to&nbsp;$365.</p>
<p>Spotify is the largest pure-play audio streaming service&nbsp;and is&nbsp;both driving and benefitting from the ongoing secular shift from transaction-based to access-based streaming models, according to the analyst.</p>
<p>Gross margin strength is driven by music &amp; marketplace gains, podcast improvement, other cost of revenue leverage, &amp; advertising, with additional cost efficiencies helping to drive significant operating and net income growth &amp; meaningfully higher FCF in 2024, Anmuth said.&nbsp;</p>
<p><strong><em>Also Read:</em></strong><em>&nbsp;<a target="_blank" href="https://www.benzinga.com/general/entertainment/24/04/38387229/spotify-demonstrates-robust-financial-health-with-impressive-q1-revenue-margin-improvements" rel="noreferrer noopener">Spotify Demonstrates Robust Financial Health With Impressive Q1 Revenue, Margin Improvements: Analyst</a></em></p>
<p>Notably, Spotify remains confident in achieving the medium-term financial targets laid out at its 2022 Investor Day of 30-40% gross margins and 10%+ operating margin, the analyst noted.&nbsp;</p>
<p>He expects revenue growth to accelerate in 2024, supported by more balanced growth across Premium Subscribers. While MAU growth has decelerated, it remains&nbsp;strong&nbsp;at +19% in the first quarter, and Spotify will ramp up S&amp;M spending through the year to support top-of-funnel improvements.&nbsp;</p>
<p>Anmuth projected 2024 net adds of 81 million for MAUs (vs. 113 million in 2023) &amp; 27 million for Premium Subscribers (vs. 31 million in 2023).&nbsp;</p>
<p>As Spotify continues to add more value to its product offering, pricing will become an increasingly important revenue driver, and he expects the introduction of an audiobook tier and basic music/podcast tier across five markets in the second quarter, with a potential 2024 revenue upside from a broader rollout.</p>
<p>Overall, the analyst is confident in the company&#8217;s ability to accelerate revenue growth while meaningfully increasing profitability, and he noted Spotify maintained long-term pricing power.&nbsp;</p>
<p>Anmuth expects second-quarter revenue and EPS of 3.81 billion euros and 1.21 euros, respectively.</p>
<p><strong>Piper Sandler&nbsp;</strong>analyst Matt Farrell reiterated Spotify&#8217;s Neutral rating and raised the price target from&nbsp;$300&nbsp;to&nbsp;$320.</p>
<p>Despite softer MAU trends and in-line subscribers, Spotify delivered gross margin well ahead of expectations, showing once again that the profitability dynamics matter most to investors, the analyst said.&nbsp;</p>
<p>Specifically, the&nbsp;gross margin was 120 basis points ahead of expectations on the back of improved music and podcast profitability, while second-quarter operating income guidance of 250 million euros was well ahead of expectations.&nbsp;</p>
<p>He said&nbsp;that&nbsp;the company has course-corrected its marketing spending&nbsp;to&nbsp;better&nbsp;address MAUs&nbsp;moving forward.&nbsp;Finally, Farrell added that the company reiterated its expectation of improving gross&nbsp;margin and operating margin&nbsp;as it moves through 2024.</p>
<p>Farrell expects second-quarter revenue and EPS of 3.80 billion euros and 1.21 euros, respectively.</p>
<p><strong>Goldman Sachs</strong>&nbsp;analyst Eric Sheridan maintained Spotify with a Neutral and raised the price target from&nbsp;$277&nbsp;to&nbsp;$317.</p>
<p>While Spotify&#8217;s first-quarter earnings report indicated a more neutral to downward bias to user trajectory (with roughly in-line subscribers but some softness at the&nbsp;top of the funnel), Sheridan noted the positive commentary and first-quarter results around both gross margin and operating margin as&nbsp;key&nbsp;drivers in Spotify&#8217;s outperformance.&nbsp;</p>
<p>In terms of themes, the analyst noted that Spotify management anchored its earnings report and call around a few themes &#8211;&nbsp;all aiming toward compounded advertising revenue growth and improved ad-supported gross margin.&nbsp;</p>
<p>The themes included striking a balance around user opportunity in terms of focusing on high LTV users, a focus on narrowing the price-to-value gap with price increases in 5 markets in second-quarter, continued discipline around driving operational efficiencies with both gross and operating margin guidance for second-quarter coming in above expectations, update on capital allocation priorities to come with new CFO start date in third-quarter and continued focus on scaling its offering around podcast and audiobook opportunities and increasing the scale of its global advertising efforts.&nbsp;</p>
<p>Looking over a long-term horizon, Sheridan noted that Spotify has already proven its industry-leading position in the audio distribution landscape.</p>
<p>Sheridan expects second-quarter revenue and EPS of 3.80 billion euros (prior 3.84 billion euros) and 1.27 euros (prior 1.16 euros).&nbsp;</p>
<p>Spotify&nbsp;stock gained over 114% in the last 12 months. Investors can gain exposure to the stock via&nbsp;<strong>Global X Social Media ETF&nbsp;</strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOCL#NASDAQ">SOCL</a>) and&nbsp;<strong>ProShares On-Demand ETF</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OND#NYSE">OND</a>).</p>
<p><strong>SPOT price action: </strong>Spotify shares traded lower by 7.34% at $281.06 at the last check Wednesday.</p>
<p><em>Spotify Photo by esthermm on Shutterstock</em></p>


<p>Macquarie  analyst Tim Nollen   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Outperform and raises the price target from $330 to $345.</p>


Macquarie Maintains Outperform on Spotify Technology, Raises Price Target to $345

<p>HSBC  analyst Joseph Thomas   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Buy and raises the price target from $310 to $355.</p>


HSBC Maintains Buy on Spotify Technology, Raises Price Target to $355

<p>Morgan Stanley  analyst Manan Gosalia   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Overweight and raises the price target from $350 to $370.</p>


Morgan Stanley Maintains Overweight on Spotify Technology, Raises Price Target to $370

<p>Guggenheim  analyst Michael Morris   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Buy and raises the price target from $290 to $350.</p>


Guggenheim Maintains Buy on Spotify Technology, Raises Price Target to $350

<p>B of A Securities  analyst Jessica Reif Ehrlich   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Buy and raises the price target from $315 to $370.</p>


B of A Securities Maintains Buy on Spotify Technology, Raises Price Target to $370

<p>Barclays  analyst Kannan Venkateshwar   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Overweight and raises the price target from $335 to $350.</p>


Barclays Maintains Overweight on Spotify Technology, Raises Price Target to $350

<p>JP Morgan  analyst Doug Anmuth   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Overweight and raises the price target from $320 to $365.</p>


JP Morgan Maintains Overweight on Spotify Technology, Raises Price Target to $365

<p>Piper Sandler  analyst Matt Farrell   reiterates Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Neutral and raises the price target from $300 to $320.</p>


Piper Sandler Reiterates Neutral on Spotify Technology, Raises Price Target to $320

WIIM

Spotify shares are trading lower, pulling back after gaining Tuesday on Q1 earnings.

<p>Goldman Sachs  analyst Eric Sheridan   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Neutral and raises the price target from $277 to $317.</p>


Goldman Sachs Maintains Neutral on Spotify Technology, Raises Price Target to $317

<p>Loop Capital  analyst Alan Gould   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Hold and raises the price target from $250 to $300.</p>


Loop Capital Maintains Hold on Spotify Technology, Raises Price Target to $300

<p>Canaccord Genuity  analyst Maria Ripps   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Buy and raises the price target from $330 to $370.</p>


Canaccord Genuity Maintains Buy on Spotify Technology, Raises Price Target to $370

<p><strong>Spotify Technology SA</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) reported upbeat earnings for its fiscal <a href="https://www.benzinga.com/news/earnings/24/04/38377703/spotify-surpasses-q1-earnings-and-revenue-estimates">first quarter 2024 on Tuesday</a>.</p>
<p>The company posted revenue growth of 20% year-on-year to $3.95 billion (3.64 billion euros), beating the consensus of $3.85 billion. EPS of $1.05 (97 cents) beat the consensus of 70 cents, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.</p>
<p>Premium Revenue grew 20% year over year to 3.25 billion euros, helped by subscriber additions and ARPU increases. Total MAUs (Monthly Active Users) rose 19% Y/Y to 615 million , which missed its guidance by 3 million.</p>
<p>Ad-supported MAUs grew 22% Y/Y to 388 million. Premium Subscribers grew 14% Y/Y to 239 million.</p>
<p>Spotify held 4.7 billion euros in cash and equivalents and generated €207 million in free cash flow.</p>
<p>Spotify said it expects second-quarter revenue of 3.8 billion euros (consensus $3.76 billion) and total MAUs of 631 million.</p>
<p>Spotify shares rose 11.4% to close at $303.31 on Tuesday.</p>
<p>These analysts made changes to their price targets on Spotify following earnings announcement.</p>
<ul>
<li><strong>Pivotal Research</strong> boosted the price target on Spotify from $390 to $400. Pivotal Research analyst Jeffrey Wlodarczak maintained a Buy rating.</li>
<li><strong>Benchmark</strong> raised the price target on Spotify from $325 to $375. Benchmark analyst Matthew Harrigan maintained a Buy rating.</li>
<li><strong>Rosenblatt</strong> increased the price target on Spotify from $315 to $396. Rosenblatt analyst Barton Crockett maintained a Buy rating.</li>
</ul>
<p>Now Read This: <a href="https://www.benzinga.com/news/earnings/24/04/38396543/meta-likely-to-report-higher-q1-earnings-here-are-the-recent-forecast-changes-from-wall-streets-mos">Meta Likely To Report Higher Q1 Earnings; Here Are The Recent Forecast Changes From Wall Street&#8217;s Most Accurate Analysts</a></p>


<p>Rosenblatt  analyst Barton Crockett   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Buy and raises the price target from $315 to $396.</p>


Rosenblatt Maintains Buy on Spotify Technology, Raises Price Target to $396

<p>Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-ratings/">analyst ratings page</a>.</p>
<ul>
<li>Wedbush boosted the price target for <strong>Amazon.com, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) from $220 to $225. Wedbush analyst Scott Devitt maintained an Outperform rating. Amazon shares rose 1.3% to close at $179.54 on Tuesday. <a href="https://www.benzinga.com/quote/AMZN/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Benchmark increased <strong>Spotify Technology S.A.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) price target from $325 to $375. Benchmark analyst Matthew Harrigan maintained a Buy rating. Spotify shares climbed 11.4% to close at $303.31 on Tuesday. <a href="https://www.benzinga.com/quote/SPOT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Mizuho raised the price target for <strong>General Motors Company</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) from $48 to $52. Mizuho analyst Vijay Rakesh maintained a Buy rating. General Motors shares gained 4.4% to close at $45.10 on Tuesday. <a href="https://www.benzinga.com/quote/GM/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Keybanc cut <strong>Pinterest, Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PINS#NYSE">PINS</a>) price target from $48 to $40. Keybanc analyst Justin Patterson maintained an Overweight rating. Pinterest shares rose 0.9% to close at $33.02 on Tuesday. <a href="https://www.benzinga.com/quote/PINS/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Wedbush slashed the price target for <strong>MercadoLibre, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MELI#NASDAQ">MELI</a>) from $2,000 to $1,800. Wedbush analyst Scott Devitt maintained an Outperform rating. MercadoLibre shares rose 2% to close at $1,395.00 on Tuesday. <a href="https://www.benzinga.com/quote/MELI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Baird boosted <strong>Danaher Corporation</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHR#NYSE">DHR</a>) price target from $259 to $271. Baird analyst Catherine Schulte maintained an Outperform rating. Danaher shares gained 7.2% to close at $253.11 on Tuesday. <a href="https://www.benzinga.com/quote/DHR/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Deutsche slashed the price target for <strong>MSCI Inc</strong>. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSCI#NYSE">MSCI</a>) from $613 to $569. Deutsche Bank analyst Faiza Alwy upgraded the stock from Hold to Buy. MSCI shares fell 13.4% to close at $446.00 on Tuesday. <a href="https://www.benzinga.com/quote/MSCI/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Needham raised <strong>CoStar Group, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSGP#NASDAQ">CSGP</a>) price target from $90 to $107. Needham analyst Mayank Tandon maintained a Buy rating. CoStar Group shares fell 0.8% to close at $84.62 on Tuesday. <a href="https://www.benzinga.com/quote/CSGP/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Mizuho lowered <strong>Tesla, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) price target from $195 to $180. Mizuho analyst Vijay Rakesh maintained a Neutral rating. Tesla shares rose 1.9% to close at $144.68 on Tuesday. <a href="https://www.benzinga.com/quote/TSLA/analyst-ratings">See how other analysts view this stock.</a></li>
<li>B. Riley Securities cut <strong>The Children&#8217;s Place, Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLCE#NASDAQ">PLCE</a>) price target from $12 to $7. B. Riley Securities analyst Jeff Lick upgraded the stock from Sell to Neutral. Children&#8217;s Place shares fell 5% to close at $7.16 on Tuesday. <a href="https://www.benzinga.com/quote/PLCE/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
<p>Read More: <a href="https://www.benzinga.com/news/earnings/24/04/38396305/tesla-boeing-and-3-stocks-to-watch-heading-into-wednesday">Tesla, Boeing And 3 Stocks To Watch Heading Into Wednesday</a></p>


Pre-Market Outlook

AMZN

CSGP

MELI

MSCI

PINS

PLCE

TSLA

Tesla To $180? Here Are 10 Top Analyst Forecasts For Wednesday

<p>Benchmark  analyst Matthew Harrigan   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Buy and raises the price target from $325 to $375.</p>


Benchmark Maintains Buy on Spotify Technology, Raises Price Target to $375

<p>Pivotal Research  analyst Jeffrey Wlodarczak   maintains Spotify Technology (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) with a Buy and raises the price target from $390 to $400.</p>


Pivotal Research Maintains Buy on Spotify Technology, Raises Price Target to $400

Baron Focused Growth Fund Q1 2024 Shareholder Letter

Spotify: Firing On All Cylinders, Initiating Stock With 'Strong Buy'

DJT, BILI among major communication services gainers; SPOT, DRCT among losers

Spotify (SPOT) has released an update. Spotify Technology S.A. reports a significant turnaround with a net income of €197 million for the first qua...

Spotify Reports Strong Q1 Earnings Growth

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>If you&rsquo;re wondering what stocks to sell this quarter, you&rsquo;re in the right place. Nothing lasts forever, not even stocks. During a 2018 all-hands meeting, <strong>Amazon</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/amzn-stock-quote/"><strong>AMZN</strong></a></span>) founder and then CEO Jeff Bezos famously said: &ldquo;I predict one day Amazon will fail. Amazon <a href="https://finance.yahoo.com/news/jeff-bezos-told-employees-predict-190915894.html">will go bankrupt</a>.&rdquo; <strong>Apple</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/aapl-stock-quote/"><strong>AAPL</strong></a></span>) was on the <a href="https://www.thestreet.com/apple/news/apple-in-the-1990s-why-it-nearly-went-bankrupt">verge of going bankrupt </a>in 1997 before rival <strong>Microsoft </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/msft-stock-quote/"><strong>MSFT</strong></a></span>) saved the then struggling company with a $150 million investment. History is littered with once famous companies and stocks that no longer exist. </p>



<p>Since the turn of the century, a number of <a href="https://www.stash.com/learn/famous-companies-bankrupt-no-longer-exist/">once high-flying stocks</a> have gone the way of the dodo bird. Names such as <strong>Blockbuster Video</strong>, <strong>Pets.com</strong>, and <strong>Enron</strong>, to cite only a few. These companies, and others, failed after losing their competitive edge, being mismanaged or engaging in fraud. So, which stocks are next to disappear? What companies are most in danger of ceasing operations in the near-term. There are plenty of concerns to choose from. Here are seven stocks that could be heading six-feet under.   </p>



<h2>Stocks to Sell: Tilray Brands (TLRY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/tlry_tilray_1600-300x169.png" alt="In this photo illustration Tilray (TLRY) logo of a Canadian pharmaceutical and cannabis company is seen on a mobile phone and a computer screen."><div>Source: viewimage / Shutterstock.com</div></div><p>Cannabis producer <strong>Tilray Brands</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/tlry-stock-quote/"><strong>TLRY</strong></a></span>) is awash in red ink. The company recently reported <a href="https://www.marketwatch.com/story/tilray-brands-stock-drops-as-it-reports-wider-than-expected-loss-and-misses-on-revenue-83ba0929">a quarterly loss of $105 million</a> and lowered its forward guidance as its sales continue to crumble. The company said that it lost 12 cents a share for the fiscal quarter ended Feb. 29. Revenue totalled $188.3 million. While the latest results were better than a loss of $1.20 billion and revenue of $145.6 million recorded a year earlier, the latest earnings print shows that Tilray Brands remains in financial straits. </p>



<p><a href="https://www.barrons.com/articles/tilray-earnings-stock-price-marijuana-063c4801">In terms of guidance</a>, Tilray said that it expects earnings of only $60 million to $63 million for its entire 2024 financial year as its cannabis sales dry up. The newest guidance is down from earlier estimates of $78 million in earnings. Insult to injury, management at Tilray said that they no longer expect positive free cash flow this financial year. TLRY stock continues to slide lower, with the share price dropping 21% after its latest financial results and guidance were made public. </p>



<p>The stock is now down 97% over the last five years and trading at less than two bucks. </p>



<h2>Trump Media &amp; Technology Group (DJT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/stocks-to-sell-300x169.jpg" alt="A white clock indicates it's time to sell."><div>Source: Shutterstock</div></div><p>Aside from its association with former president Donald Trump, there&rsquo;s not much to recommend <strong>Trump Media &amp; Technology Group</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/djt-stock-quote/"><strong>DJT</strong></a></span>). The company is barely afloat, having reported a 2023 net loss of $58 million on just $4.1 million in revenues. Since going public in late March of this year through a special purpose acquisition company (SPAC) deal, DJT stock has largely collapsed. The share price is currently <a href="https://www.barrons.com/articles/djt-truth-social-trump-media-stock-price-today-79463337">60% below its 52-week high </a>and has fallen 50% since March 27 of this year.</p>



<p>Complicating matters is the <a href="https://www.reuters.com/technology/trump-poised-clinch-13-billion-social-media-company-stock-award-2024-04-23/">huge allotment of stock </a>given to former president Trump. In all, Donald Trump&rsquo;s stake in the media company stands at $4 billion based on the current share price. He owns more than 100 million. The shares that Donald Trump owns are subject to a lock-up period that prevents him from selling them during the first six months following the company going public. But there is speculation that he will sell his stake in the media company as soon as possible. What happens to DJT stock then?</p>



<h2>Stocks to Sell: Paramount Global (PARA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/para1600-300x169.png" alt="In this photo illustration, the Paramount Global (PARA) logo is displayed on a smartphone screen"><div>Source: rafapress / Shutterstock.com</div></div><p>It&rsquo;s never good when board members resign from a company en masse. But that&rsquo;s what recently happened at <strong>Paramount Global </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/para-stock-quote/"><strong>PARA</strong></a></span>) when four board directors <a href="https://www.hollywoodreporter.com/business/business-news/paramount-board-members-leave-skydance-deal-talks-1235871255/">announced their departure </a>together. Dawn Ostroff, a former <strong>Spotify</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/spot-stock-quote/"><strong>SPOT</strong></a></span>) executive; Nicole Seligman, former president of <strong>Sony Entertainment </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/sony-stock-quote/"><strong>SONY</strong></a></span>); Frederick Terrell, an investment banker; and Rob Klieger, an attorney, are each leaving the board. The resignations come as Paramount Global tries to sell itself.</p>



<p>Since the start of the year, Paramount has been involved in <a href="https://www.cnbc.com/2024/02/27/warner-bros-discovery-halts-paramount-global-merger-talks.html">aborted merger talks</a> with <strong>Warner Bros. Discovery </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/wbd-stock-quote/"><strong>WBD</strong></a></span>), received a $26 billion all-cash takeover offer from private-equity firm <strong>Apollo Global Management </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/apo-stock-quote/"><strong>APO</strong></a></span>) that the board declined, and, most recently, entered into <a href="https://www.reuters.com/markets/deals/paramount-shareholders-grow-increasingly-vocal-about-possible-skydance-media-2024-04-11/">exclusive discussions</a> with privately held <strong>Skydance Media </strong>about a potential takeover or merger. Skydance has entered into a 30-day exclusive negotiating period with Paramount&rsquo;s board, though a deal is not guaranteed.</p>



<p>If all goes well, Paramount Global will be purchased, taken private, and its stock delisted. Or, a merged company could survive as different publicly traded entity. What is clear at this point is that Paramount&rsquo;s future looks tentative at best. PARA stock is down 75% over the last five years, including a 43% decline in the last 12 months. </p>



<h2>Nordstrom (JWN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/03/red-stocks-down-sell-arrow-1600-300x169.jpg" alt="Bright red graphic of stock arrow headed sharply downward beside downward bar graph. Stocks to Never Buy"><div>Source: shutterstock.com/Lemonsoup14</div></div><p>Speaking of going private, the family behind U.S. department store chain <strong>Nordstrom </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/jwn-stock-quote/"><strong>JWN</strong></a></span>) has created a special committee to evaluate bids aimed at <a href="https://www.wsj.com/livecoverage/stock-market-today-earnings-04-18-2024/card/nordstrom-stock-pops-after-journal-reports-possible-take-private-bid-UaYYVFKvJlG8Yqbor9jL">taking the department store chain private</a>. This as the 123-year-old company struggles with a decline in sales as shopping increasingly moves online. Last summer, Nordstrom closed all of its locations in Canada after less than a decade in the country, shutting down multiple outlets following huge liquidation sales.</p>



<p>The special committee has been set-up to evaluate proposals aimed at taking Nordstrom private, delisting JWN stock in the process. The company has been <a href="https://qz.com/nordstrom-going-private-committee-founding-family-1851422536">down this road before</a>. In 2017, private-equity firm <strong>Leonard Green &amp; Partners</strong> came close to taking Nordstrom private but the deal fell through because of a dispute over price. The latest take private action comes after Nordstrom-issued weak guidance for the year ahead amid soft demand, lagging sales, bloated inventory levels, and increasing markdowns.</p>



<p>JWN stock is down 52% over the past five years. </p>



<h2>Stocks to Sell: GameStop (GME)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/05/gamestop-sign-gme-stock-storefront-1600-300x169.jpg" alt="GameStop (GME) sign on side of building in blue early morning light"><div>Source: shutterstock.com/EchoVisuals</div></div><p>It wasn&rsquo;t long ago that video game retailer and meme stock favorite <strong>GameStop </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/gme-stock-quote/"><strong>GME</strong></a></span>) was talking about becoming the &ldquo;<a href="https://www.cnbc.com/2020/11/20/former-chewy-ceo-ryan-cohen-urges-gamestop-to-become-the-amazon-of-video-games.html">Amazon of gaming</a>.&rdquo; Such talk has since faded amid a failed turnaround strategy, successive earnings misses, and ongoing share price declines. Despite repeated efforts, GameStop has not managed to move its business online and meaningfully shrink its retail chain of video game stores that are seeing less foot traffic. </p>



<p>At the end of March, GME stock plunged 18% after the company reported <a href="https://www.cnbc.com/2024/03/26/gamestop-cuts-jobs-quarterly-revenue-falls-.html#:~:text=GameStop%20posted%20revenue%20of%20%241.79,same%20quarter%20a%20year%20earlier.">weak financial results</a> for the final quarter of 2023 that included the year-end holiday shopping season. GameStop announced earnings of 22 cents and revenue of $1.79 billion. Analysts on Wall Street had expected earnings of 30 cents per share and sales of $2.05 billion. Hardware and accessories sales fell 12% year-over-year while software sales declined 31% in the quarter. The company&rsquo;s sales have steadily eroded as consumers purchase games online.</p>



<p>The newest turnaround plan will see GameStop CEO Ryan Cohen <a href="https://www.baystreet.ca/techinsider/4168/GameStop-Shares-Plunge-18-On-Earnings-Miss">invest the company&rsquo;s excess cash</a> in stocks and cryptocurrencies, a move that has made more than a few analysts and investors cringe. In the last 12 months, GME stock has fallen 49%, including a 39% pullback so far in 2024. </p>



<h2>Canopy Growth (CGC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/cgc-1600-2-300x169.png" alt="Smartphone with logo of Canadian cannabis company Canopy Growth Corporation on screen in front of web page. Cannabis plants are in the background. CGC stock."><div>Source: T. Schneider / Shutterstock</div></div><p><strong>Canopy Growth</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/cgc-stock-quote/"><strong>CGC</strong></a></span>) is another cannabis producer that is in dire straits and has landed itself on this stocks to sell list. In recent months, the company has sold its corporate headquarters, issued more stock to raise money, and placed part of its business under creditor protection. Canopy Growth&rsquo;s latest earnings showed <a href="https://www.thestar.com/business/cannabis-company-canopy-growth-reports-216-8m-q3-net-loss/article_f249c4d4-b477-5a3e-8d69-2c9cec629ec8.html">a net loss of $216.8 million</a>. That compares with a net loss of $264.4 million a year earlier. Revenue for what was the company&rsquo;s fiscal third quarter totalled $78.5 million, down 8% from $84.9 million a year earlier.</p>



<p>Canopy Growth continues to struggle with declining sales and a loss of market share. Over the past five years, CGC stock has plunged 98%. Last December, the company executed <a href="https://www.baystreet.ca/stockstowatch/16668/Canopy-Growths-Stock-Falls-20-On-News-Of-Reverse-Stock-Split">a reverse stock split</a> to artificially raise its share price. The company consolidated its shares on a one-for-10 basis on Dec. 15. Reverse stock splits are, rightfully, seen by markets as an act of desperation by companies that are trying to artificially boost their share price, often to avoid being delisted from a stock exchange, in this case the <strong>Nasdaq</strong>. </p>



<h2>Express (EXPRQ)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/03/down-arrow-coins-stocks-sell-1600-300x169.jpg" alt="Photo of stair of coins with red arrow headed downward over top of the coin stacks"><div>Source: shutterstock.com/Pla2na</div></div><p>Clothing retailer <strong>Express </strong>(OTC:<strong>EXPRQ</strong>), a fixture at American shopping malls, has filed for <a href="https://www.cnbc.com/2024/04/22/express-files-for-bankruptcy-plans-to-close-nearly-100-stores.html">Chapter 11 bankruptcy </a>and plans to close more than 100 stores. The company, whose portfolio of brands includes Bonobos and UpWest Express, listed assets of $1 billion against liabilities of $10 billion in its bankruptcy filing. As part of the bankruptcy process, the company is closing 95 Express retail stores and about a dozen UpWest stores. In all, the company operates 530 Express retail and Express Factory Outlet stores nationwide.</p>



<p>In business since 1980, Express has struggled with slowing consumer spending and a <a href="https://www.cnn.com/2024/04/22/business/express-bankruptcy/index.html">shift to online shopping</a>. The company said that it has received a commitment for $35 million in new financing from existing lenders and plans to conduct business as usual while it goes through a restructuring process. Privately held brand management firm <strong>WHP Global</strong>, which owns fashion label Anne Klein, took a 7.4% stake in Express last year. But to look at the stock price, it appears to be only a matter of time for Express.</p>



<p>This year alone, EXPRQ stock has fallen 90% and now trades deep down on the penny stock league tables, making it one of those stocks to sell ASAP. </p>



<p><em>On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.</em></p>
<div><p>Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.</p></div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT771245">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793997">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
<p>The post <a href="https://investorplace.com/2024/04/7-stocks-that-could-be-heading-six-feet-under/">7 Stocks That Could Be Heading Six-Feet Under</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

7 Stocks That Could Be Heading Six-Feet Under

Shares of leading video streamer Netflix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) found themselves in correction territory following the release of its solid Q1 earnings, dec...

Netflix Stock (NASDAQ:NFLX): A Buy After Earnings for Long-Term Play

In a report released today, Jonathan Woo from Phillip Securities upgraded Spotify Technology SA (SPOT – Research Report) to a Buy, with a price tar...

Spotify's Growth Continues: Upgraded to Buy on Rising ARPU and Strategic Expansions

This week, U.S. President Joe Biden signed legislation that could force ByteDance, the parent of popular short-form content app TikTok, to either d...

TikTok Ban: ByteDance Gears Up for a Legal Showdown

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>If you want to beat the market these days, you need to be investing in A-rated <a href="https://investorplace.com/industries/technology/">tech stocks</a>. The technology sector, by far, has been the best stock market sector for the last several quarters, thanks to the advances in artificial intelligence and machine learning.</p>



<p>Despite a recent pullback, the tech-heavy <strong>Nasdaq composite</strong> is up more than 30% in the last 12 months, topping both the <strong>S&amp;P 500</strong> (22% gain) and the <strong>Dow Jones Industrial Average</strong> (13% gain).</p>



<p>A-rated tech stocks make ideal picks for growth investors because the sector is full of companies known for rapid growth and innovation. Tech companies are often on the ground floor of the most market-moving advances &mdash; like generative AI &mdash; that can revolutionize the world.</p>



<p>As technology becomes a greater factor in today&rsquo;s world &mdash; playing a key role in banking, industry, energy, commerce, aerospace and manufacturing &mdash; tech companies can capitalize since they play an increasingly crucial role in everyday life.</p>



<p>The best way to find A-rated tech stocks is to use the Portfolio Grader. The Portfolio Grader is a free tool that ranks every stock on an &ldquo;A&rdquo; through &ldquo;F&rdquo; scale based on earnings performance, growth, analyst sentiment, momentum and other factors.</p>



<p>If you&rsquo;re looking to buy into some of the hottest stocks in recent months, these names are poised to deliver.</p>



<h2>Nvidia (NVDA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/05/nvda-1600-300x169.png" alt="Closeup of mobile phone screen with logo lettering of nvidia corporation on computer keyboard. NVDA stock."><div>Source: Shutterstock</div></div><p><strong>Nvidia</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/"><strong>NVDA</strong></a>) has been my top choice in any list of A-rated tech stocks for a while now. And why not?</p>



<p>The chipmaker has as much as a 90% share in the high-powered graphics processing units that are most responsible for generative AI applications. And Nvidia has more up its sleeve &mdash; its GB200 Blackwell processor that&rsquo;s coming out later this year is estimated to be four times faster than the H100 GPU.</p>



<p>Nvidia had massive growth in 2023 with its stock price of 239%. While there are fears that Nvidia&rsquo;s growth may stall out in the beginning of this year as companies wait for the Blackwell processors, I think that the demand for generative AI is still going to power NVDA stock through the first half of the year.</p>



<p>NVDA stock is up 61% in 2024 and gets an &ldquo;A&rdquo; rating in the Portfolio Grader.</p>



<h2>Palantir Technologies (PLTR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/07/pltr1600-1-300x169.png" alt="Palantir Logo. Palantir Technologies (PLTR) is a publicly traded American company that focuses on the specialized field of big data analytics."><div>Source: Iljanaresvara Studio / Shutterstock.com</div></div><p>Investors in <strong>Palantir Technologies</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/pltr-stock-quote/"><strong>PLTR</strong></a>) have just as much reason to be bullish as their peers who hold NVDA stock. Palantir is up 164% over the last 12 months as the company&rsquo;s commercial division showed rapid growth.</p>



<p>For years, Palantir made its bread and butter by serving the intelligence and defense industries, using machine learning and artificial intelligence to provide real-time analysis to the Pentagon.</p>



<p>But in the last quarter of 2023, Palantir saw 32% growth in its commercial segment, totaling $284 million in revenue. That compares to $324 million in government contract revenue in the quarter &mdash; but only 5% growth in that segment.</p>



<p>I&rsquo;m expecting the commercial revenue to top the government revenue soon. Palantir&rsquo;s new Artificial Intelligence Platform works with both government and commercial clients. And Palantir also has a new agreement with <strong>Oracle</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/orcl-stock-quote/"><strong>ORCL</strong></a>) that will allow Palantir to use Oracle&rsquo;s cloud network to deploy products such as its Gotham and AIP platforms.</p>



<p>In all, I think that the recent pullback in PLTR stock makes for a great buying opportunity for a company that&rsquo;s only going to grow for the rest of 2024 &mdash; and possibly beyond.</p>



<p>PLTR stock gets an &ldquo;A&rdquo; rating in the Portfolio Grader.</p>



<h2>Netflix (NFLX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/nflx1600-1-300x169.png" alt="Netflix (NFLX) logo displayed on smartphone on top of pile of money."><div>Source: izzuanroslan / Shutterstock.com</div></div><p><strong>Netflix</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/nflx-stock-quote/"><strong>NFLX</strong></a>) is one of the first &mdash; and best &mdash; streaming companies. And it has proven to be able to adapt even in the face of massive competition to retain its position as king of the heap.</p>



<p>Netflix showed a lot of vulnerability in 2022, with its share price dropping to below $200. Growth slowed and it appeared that other streaming services were finally starting to catch up and possibility surpass NFLX.</p>



<p>But then Netflix made what I think was a bold, and inspired business decision. It decided to toss away its <a href="https://www.usatoday.com/story/money/2023/05/24/netflix-password-sharing-is-history-how-to-break-the-news-to-friends/70252379007/">longtime wink and nod to account sharing</a> and instead charge a fee to any account holder who had someone outside of their household log in.</p>



<p>Rather than facing a backlash from the public, Netflix saw a massive windfall from the move for one reason &mdash; because people saw value in the product, and they didn&rsquo;t want to give it up. In the first quarter after the change, Netflix saw an increase of 8.8 million paid subscribers.</p>



<p>For the first quarter, NFLX saw revenue up 15% from a year ago to $9.37 billion. And it forecast Q2 revenue of $9.49 billion, which would be a nearly 16% increase from last year.</p>



<p>NFLX is hitting on all cylinders. Again. The stock is up 14% this year and gets an &ldquo;A&rdquo; rating in the Portfolio Grader.</p>



<h2>PDD Holdings (PPD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/11/pdd-stock-1-300x169.jpg" alt="A smartphone displays the Pinduoduo (PDD) website."><div>Source: madamF / Shutterstock.com</div></div><p><strong>PPD Holdings</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/ppd-stock-quote/"><strong>PPD</strong></a></span>) is the parent company of the Chinese e-commerce company Pinduoduo, which specializes in serving China&rsquo;s mom-and-pop agricultural industry. </p>



<p>Pinduoduo makes it possible for small-scale farmers to sell their fruits and vegetables directly to consumers.</p>



<p>But it doesn&rsquo;t stop there. PPD Holdings is expanding into Western markets via its Temu app, which provides Chinese goods that are sharply discounted. Temu is among the most downloaded apps in the U.S., German, the U.K., France, Canada and Italy.</p>



<p>In the U.S., Temu is the <a href="https://www.wsj.com/business/retail/the-spend-spend-spend-strategy-behind-temus-rapid-ascent-in-america-d2bdefc3">No. two shopping app</a>, with monthly users increasing by 950% on a year-over-year basis in the last quarter of 2023.</p>



<p><a href="https://investor.pddholdings.com/static-files/8c935dcd-f4a8-4983-844c-a8bcc72ebee7">Earnings in the fourth quarter</a> included revenue of $12.5 billion, up 123% from a year ago. PDD brought in a profit of $3.1 billion and an increase of 146% from the fourth quarter of 2022.</p>



<p>However, there&rsquo;s some risk involved with PDD. Increased tensions between the U.S. and Beijing increase the likelihood that companies like PDD could face additional restrictions from Washington. That&rsquo;s one reason why PDD stock is down 12% so far in 2024, despite its earnings growth and potential.</p>



<p>PDD stock has an &ldquo;A&rdquo; rating in the Portfolio Grader. But investing in this stock means paying attention to global politics.</p>



<h2>International Business Machines (IBM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/IBM1600-300x169.jpg" alt="Quantum computing stocks: Sign of IBM with Canada Head Office Building in background in Markham, Ontario, Canada. IBM is an American multinational technology company."><div>Source: JHVEPhoto / Shutterstock.com</div></div><p>The inclusion of <strong>International Business Machines</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/ibm-stock-quote/"><strong>IBM</strong></a>) proves that you can find exciting A-rated tech stocks even among the oldest and most established tech companies on the planet.</p>



<p>IBM traces its history back for generations and punch-card based data processing machines in the 1880s. IBM was responsible for the first electronic computer, launched in 1943, and the first personal computer in 1981.</p>



<p>Today, it&rsquo;s simply one of the biggest cloud infrastructure providers in the world. Its Watson AI engine and Watsonx generative AI platform have the potential to power IBM through the decade by partnering with enterprise customers.</p>



<p><a href="https://www.ibm.com/downloads/cas/Y23EY3W8">Earnings for the first quarter of 2024</a> included revenue of $14.5 billion, up 1% from a year ago. Net income of $1.6 billion was a massive 69% increase from last year, and earnings per share of $1.69 was up 66% from the first quarter of 2023.</p>



<p>IBM issued guidance for full-year revenue growth in the mid- single digits, and expects to generate roughly $12 billion in free cash flow for the year.</p>



<p>IBM stock is up 12% in 2024 and gets an &ldquo;A&rdquo; rating in the Portfolio Grader.</p>



<h2>Spotify Technology (SPOT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/spot1600-300x169.jpg" alt="Spotify (SPOT) logo is on the screen of a smartphone with headphones plugged in."><div>Source: Kaspars Grinvalds / Shutterstock.com</div></div><p>If you love music, you probably know all about <strong>Spotify Technology</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/spot-stock-quote/"><strong>SPOT</strong></a>). Spotify is a digital music, podcast and video service that provides countless tunes and audio files from hundreds of artists.</p>



<p>There are a few ways to make money. It sells advertisements that are targeted to its massive base of 388 million monthly active users. And it also has a premium ad-free subscription service that has 239 million monthly active users.</p>



<p>Both levels of users are growing rapidly. Spotify says the number monthly active users using Spotify for free <a href="https://s29.q4cdn.com/175625835/files/doc_financials/2024/q1/Q1-2024-Shareholder-Deck-FINAL.pdf">increased 22% in the first quarter</a> from a year ago, while paid premium memberships increased by 14% from a year ago.</p>



<p>And that means much greater profits for SPOT stock. Spotify reported revenue of $3.6 billion in the quarter, up 20% from a year ago. Profits of $1 billion were up 31% from the first quarter of 2023.</p>



<p>That&rsquo;s music to any investor&rsquo;s ears. SPOT stock is up 50% this year and gets an &ldquo;A&rdquo; rating in the Portfolio Grader.</p>



<h2>CrowdStrike Holdings (CRWD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/crwd1600-300x169.png" alt="Person holding smartphone with logo of US software company CrowdStrike Holdings Inc. (CRWD) on screen in front of website. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div><p>As technology becomes more critical, more of our personal information and finances are online. Cloud computing makes it possible to tap into business networks at home, in the office or through a mobile device, but there are always bad actors who are looking to do damage by breaking into a network to steal or cause mayhem.</p>



<p>So my top pick for cybersecurity stock is <strong>CrowdStrike Holdings</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/crwd-stock-quote/"><strong>CRWD</strong></a>). Its endpoint security solutions include its Falcon platform, which secures entry points on servers, smartphones and laptops.</p>



<p>The company offers 27 cloud modules on its Falcon platform on a software-as-a-service (SaaS) model, including corporate endpoint security, IT operations, cloud security, data protection, identity protection and cybersecurity generative AI.</p>



<p>Roughly 64% of CrowdStrike customers subscribe to at least five modules, giving CrowdStrike an impressive revenue stream. The company brought in <a href="https://ir.crowdstrike.com/news-releases/news-release-details/crowdstrike-reports-fourth-quarter-and-fiscal-year-2024">$845.3 million in revenue</a> in the fourth quarter, up 33% from a year ago.</p>



<p>CRWD stock should continue to perform as its customers base grows and its SaaS model flourishes. CrowdStrike is up 16% in 2024 and gets an &ldquo;A&rdquo; rating in the Portfolio Grader.</p>



<p><em>On the date of publication, Louis Navellier had a long position</em>&nbsp;in&nbsp;<em>NVDA, PLTR, SPOT and CRWD. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.</em></p>



<p><em>The InvestorPlace Research Staff member primarily responsible for this article had a long position in NVDA and PLTR. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.</em><span><a href="https://investorplace.com/stock-quotes/-stock-quote/"></a></span></p>
<h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT771245">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793997">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
<p>The post <a href="https://investorplace.com/market360/2024/04/7-a-rated-tech-stocks-for-your-must-own-list/">7 A-Rated Tech Stocks For Your Must-Own List</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

7 A-Rated Tech Stocks For Your Must-Own List

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Most entertainment stocks are considered better investments than <strong>AMC</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/amc-stock-quote/"><strong>AMC</strong></a>)&mdash;well, duh! We&rsquo;re talking about a stock that <a href="https://seekingalpha.com/symbol/AMC/momentum/performance">lost over 90% of its value</a> last year and over 97% in the past decade. Additionally, it continues to deplete its cash reserves while grappling with a debt burden that pushes it close to bankruptcy. However, AMC is far from being an industry bellwether in 2024, with plenty of attractive picks in the entertainment sector.&nbsp;</p>



<p>It&rsquo;s interesting in the entertainment sector, though, with the rapid acceleration of streaming technologies impacting consumer preferences. Moreover, streaming has proved to be a remarkably resilient space despite inflation chipping away consumers&rsquo; purchasing power. It is important, though, to separate the wheat from the chaff, making these entertainment stocks more attractive than others.</p>



<h2>Entertainment Stocks: Netflix (NFLX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/nflx1600-1-300x169.png" alt="Netflix (NFLX) logo displayed on smartphone on top of pile of money."><div>Source: izzuanroslan / Shutterstock.com</div></div><p>There&rsquo;s an excellent buy-the-dip opportunity in <strong>Netflix</strong>&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/nflx-stock-quote/"><strong>NFLX</strong></a>)&nbsp;stock at this time. Despite posting another handsome beat across both lines, streaming pioneer Netflix lost roughly 9% after earnings. The main reason for the drop is that Netflix will stop reporting subscriber numbers completely <a href="https://seekingalpha.com/news/4091321-netflix-earnings-call-cutting-membership-reporting-as-revenue-evolves">starting in the first quarter (Q1) of 2025</a>.</p>



<p>I feel as though the market is overreacting to the end of subscriber reporting and ignoring the bigger picture with Netflix. It added 9.33 million subscribers in Q1, taking its tally to 269.6 million subscribers, beating Wall Street&rsquo;s estimates by almost 48%. Moreover, <a href="https://s22.q4cdn.com/959853165/files/doc_financials/2024/q1/FINAL-Q1-24-Shareholder-Letter.pdf">sales were up 14.8% to $9.37 billion</a>, while operating income shot up $2.6 billion, a&nbsp;53% jump from the prior-year period. On top of that, it expects to post 13% to 15% revenue growth in fiscal year 2024, with its management plans to continue increasing operating margins.</p>



<p>Over the past year, the company has made notable strides through its belt-tightening measures and password-sharing crackdown. These measures have proven incredibly successful and will play a key role as Netflix sees its revenue evolving over the next few years.</p>



<h2>TKO Group Holdings (TKO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/04/wwe-300x169.jpg" alt="wwe stock WWE Monday Night Raw at 02 Arena. London"><div>Source: Tom Rose / Shutterstock.com</div></div><p><strong>TKO Group Holdings</strong>&nbsp;(NYSE:<a href="https://investorplace.com/stock-quotes/tko-stock-quote/"><strong>TKO</strong></a>) is arguably the hottest entertainment company&nbsp;at this time. Surprisingly, TKO stock is outperforming the broader market,&nbsp;<a href="https://seekingalpha.com/symbol/TKO/momentum/performance" target="_blank">up almost 22% year-to-date (YTD)</a>&nbsp;compared to the <strong>S&amp;P 500&rsquo;s</strong> 20% gain.&nbsp;This month, the discrepancy is more evident, where TKO is up 11% while the S&amp;P 500&rsquo;s is in the negative.</p>



<p>The stock has been on fire over the past few weeks following the colossal success of&nbsp;<a target="_blank" href="https://seekingalpha.com/news/4088310-wrestlemania-40-smashes-records-for-tko-group?source=content_type%3Areact%7Csection%3Asummary%7Csection_asset%3Aall_news%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A2">WWE&rsquo;s&nbsp;WrestleMania XL event</a>, followed by&nbsp;<em>UFC 300</em>. Both events shattered multiple records, shedding light on the incredible combo of two of the largest entertainment intellectual properties in the WWE and UFC.&nbsp;</p>



<p>The combined entity will continue to reap the rewards through its diverse revenue streams, including media rights, event ticketing, and branded merchandise. Moreover, there are also plans to venture into new markets, such as online betting, positioning it for long-term growth. I believe TKO&rsquo;s media rights are still considerably undervalued and expected to increase significantly over time.</p>



<h2>Spotify (SPOT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/spot_spotify_2_1600-300x169.png" alt="Spotify (SPOT) app on smartphone iPhone 13 Pro screen on green background."><div>Source: Diego Thomazini / Shutterstock.com</div></div><p><strong>Spotify&nbsp;</strong>(NYSE:<strong><a target="_blank" href="https://investorplace.com/stock-quotes/spot-stock-quote/">SPOT</a></strong>) is another entertainment stock that blew it out of the park with its Q1 earnings print. It comfortably bested top-and-bottom-line estimates while reporting record profits. Its operational income of &euro;168 million represented a 208% improvement from its prior loss of &euro;156 million in Q1 2023. Moreover, its &euro;3.64 billion sales&nbsp;<a target="_blank" href="https://s29.q4cdn.com/175625835/files/doc_financials/2024/q1/Q1-2024-Shareholder-Deck-FINAL.pdf">were 20% higher than the figure</a>&nbsp;it reported in the same period last year.</p>



<p>These stellar numbers indicate Spotify&rsquo;s pervasive influence in the music streaming&nbsp;realm, boasting over 600 million monthly active users. Moreover, over the years, it has become a leading podcast platform, with partnerships with industry trailblazers such as Joe Rogan and investments in original content to enhance its user base. Another major factor in Spotify&rsquo;s success is that it continues to implement its &ldquo;efficiency&rdquo; strategy, which has significantly expanded its profitability in recent quarters. &nbsp;That said, Spotify remains one of the best-<a href="https://investorplace.com/industries/communications/media/streaming/">streaming stocks</a> in 2024.</p>



<p><em>On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a></em></p>
<div><p>Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor&rsquo;s of science degree in applied accounting from Oxford Brookes University.</p></div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT771245">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793997">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
<p>The post <a href="https://investorplace.com/2024/04/most-entertainment-stocks-are-better-buys-than-amc-3-picks-to-consider/">Most Entertainment Stocks Are Better Buys Than AMC: 3 Picks to Consider</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>