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- Spotify Hikes Subscription Prices
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,283.40 ( ⬆️ 0.11%)
Nasdaq Composite @ 16,828.67 ( ⬆️ 0.56%)
Bitcoin @ $68,994.53 ( ⬇️ 0.12%)
Hey Scoopers,
Happy Tuesday! Here’s what we’re covering today:
👉 Spotify raises subscription plan prices
👉 OPEC+ may increase crude oil production
👉 Bitcoin ETFs continue to attract investments
So, let’s go 🚀
Market Wrap 📉
While the S&P 500 and Nasdaq indices ticked higher on Tuesday, the Dow Jones Industrial Average began the month with a decline.
Weak U.S. manufacturing data raised concerns about the strength of the economy, as cyclical stocks in sectors such as banks, energy, materials, and industrials led the pullback.
The ISM manufacturing index measured 48.7 in May, sending Treasury yields and the U.S. dollar lower. A reading of less than 50 indicates an economic contraction.
The first week of June is brimming with economic updates as investors await payroll data today, followed by the May jobs report on Friday.
A slowdown in economic activity would provide the Federal Reserve with the flexibility to lower interest rates in the next 12 months.
Trending Stocks 🔥
Nvidia - Shares of the chip giant surged 4.9% after it announced a new suite of AI chips to stay ahead of peers such as AMD and Intel. Nvidia said it would upgrade its AI chip architecture on an annual basis.
Cava - Shares shed about 5% after JPMorgan downgraded the stock to “neutral” from “overweight.”
Paramount Global - The media company advanced 7.5% after the firm reportedly agreed to the terms of a merger with Skydance.
Spotify Stock Gained Over 5%
Yesterday, music streaming company Spotify announced it is increasing the cost of its premium subscription plans in the U.S., marking the second price hike in a year.
Spotify users in the U.S. will be notified about the new change to their subscriptions over the next month.
In the U.S., an “individual plan” will cost $11.99, a “duo” plan will cost $16.99, and a “family” plan will cost $19.99. The “student” plan, which is priced at $5.99, will remain unchanged.
Spotify competitor Apple Music increased subscription plans in late 2022, with individual subscriptions starting at $10.99 per month.
Spotify emphasized that these price hikes will help it invest in innovation, further enhance product features, and boost profit margins.
Spotify is on track to end 2024 with adjusted earnings of $5.1 per share, compared to a loss of $2.14 per share in 2023.
U.S. Crude Oil Is Down
U.S. crude oil fell over 3% to trade below $75 per barrel on Monday, soon after OPEC+ announced plans to phase out voluntary production cuts totaling 2.2 million barrels per day.
A coalition of eight OPEC+ members led by Saudi Arabia and Russia disclosed plans to begin phasing out these cuts over 12 months, starting this October.
As per the plan, over 500,000 barrels per day would return to the market by December, and this number could rise to 1.8 million barrels per day by June 2025.
A rise in oil supply should result in lower oil prices and a deceleration in inflation numbers.
Bitcoin ETFs Continue to Attract Investments
U.S. spot bitcoin ETFs (exchange-traded funds) recorded 15 consecutive days of net flows as of last Thursday.
The 11 ETFs have attracted $2.28 billion of inflows in this period, while cumulative net inflows stand at $14 billion to date.
Moreover, global crypto investment products drew in more than $2 billion worth of funds last month, increasing year-to-date inflows to $15 billion.
Headlines You Can't Miss!
Intel unveils new AI chips
India’s stock market tumbles following election results
Roaring Kitty continues to hold a position in GameStop
Google cuts more than 100 jobs in its cloud unit
Bitfarms revenue falls 45% post BTC halving
Chart of The Day
In the last four years, Nvidia has grown its data center segment from $1.1 billion to $22.6 billion.
Back in fiscal 2024, the business accounted for 25% of total sales. Today, it accounts for 87% of revenue.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.