(HYPEBOT) – Spotify [SPOT: NYSE} stock rose 12% on Tuesday after a strong Q2 2024 report to investors, which indicated significant user and revenue growth and the first look at a new Premium tier.
As of the closer of markets Tuesday, Spotify stock was trading at $330.79 up +35.34 or 11.96%) for the day.
In a hint that the rally might not be over, pre-market trading Wednesday was in the $332.53 range, up another 0.53%. Some analysts predict another 20 – 25% upside for the streamer.
On Tuesday, Spotify reported that monthly active users now top 626 million, and paid subscribers increased by 12% year over year to 246 million. This growth in user numbers contributed to a 20% year-over-year increase in Total Revenue, which amounted to $4.12 billion.
Spotify shares Premium audio details
Spotify CEO Daniel Ek offered rare details about Spotify’s plan for hi-def audio and a Premium tier.
“The plan here is to offer a much better version of Spotify,” said Ek on the call with investors. “Think something like $5 above the current premium tier. So it’s probably around a $17 or $18 price point, but sort of a deluxe version of Spotify that has all of the benefits that the normal Spotify version has, but a lot more control, a lot higher quality across the board, and some other things that I’m not ready to talk about just yet.”
“There’s a good subset of that group of 246 million subscribers that want a much better version of Spotify,” Ek continued. “Those are huge music lovers who are primarily looking for even more flexibility in how they use Spotify and the music capabilities that exist on Spotify.”
We wrote more about Spotify’s Q2 Report here.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
