Spotify stock price has had a great year as it jumped by over 140% in 2024, bringing its market cap to over $92 billion. SPOT, a leading streaming company, has soared by 563% from its lowest point in 2023. So, does the stock have more upside as some top insiders sell?

Spotify insiders are selling the stock

Recent data shows that some senior Spotify shareholders are selling the stock to take advantage of the ongoing surge. According to Barchart, these insiders have sold 1.6 million shares in the last three months and 3.4 million in the last 12 months. At the current price, these shares are worth over $1.5 billion. 

Some of the top shareholders selling the Spotify stock are Daniel Ek, the founder and CEO, Barry Mccarthy, Gustav Soderstrom, and Dustee Jenkins. Soderstrom is the company’s chief product and technology officer, while Jenkins is the head of public relations.

Ted Sarandos, the head of Netflix and a board member, has also unloaded shares worth over $6 million. 

Insider sales are often seen as red flags since these officials know more about a company’s performance than ordinary investors. However, some of these sales are usually part of an insider’s long-term planning. 

Read more: Spotify stock still has 30% upside: Wolfe Research

SPOT business is thriving

Spotify’s stock price has jumped as the company continues to gain market share in the music streaming industry. This is notable since it competes with companies that have an ecosystem advantage. Apple Music comes pre-installed in Apple devices, while YouTube Music is part of Google’s ecosystem. 

Spotify’s business has continued to add more customers in the past few years, even as the company has gradually boosted its prices. It ended the last quarter with 640 million monthly active users, up from 574 million in the same period last year.

The MAU is an important metric for Spotify because of how it makes money. Free users give its business revenue through advertisements. At the same time, many free users ultimately subscribe to its premium package to remove the advertisements, which can be a nuisance. 

Spotify’s ad business brought in over $472 million in revenues in the last quarter, up from $447 million in the same period last year.

The company’s premium subscribers have continued rising. It had over 252 million subscribers, a 12% annual increase from the same period last year. This growth increased its premium revenue by 21% to $3.51 billion. 

Spotify has also grown its margins by increasing premium costs and by reducing its costs through layoffs. It laid off about 17% of its workers earlier this year. At the same time, there are signs that its podcast bet is paying off.

Analysts are optimistic that Spotify’s business will continue to do well this year. The average estimate for the current quarter’s revenue is $4.14 billion, a 12.83% annual increase. Analysts also expect its annual revenue to get to $15.5 billion this year, followed by $17.8 billion in the next financial year. 

Spotify stock price analysis

The weekly chart shows that the SPOT share price has been in a strong uptrend in the past few months. It has flipped the important resistance level at $387.68, the upper side of the cup and handle chart pattern. A C&H is a highly popular bullish sign in the market. 

The Relative Strength Index (RSI) has moved to the overbought level. Therefore, the stock will likely go through a reset, which will see it drop to the support at $387. This pattern is known as a break and retest, a popular bullish sign. Therefore, the long-term view for the stock is bullish, with the target being at $600.

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President-elect Donald Trump has hinted at a surprising reversal regarding TikTok’s operations in the United States.

Speaking at AmericaFest in Phoenix, Arizona, Trump acknowledged the platform’s immense popularity during his presidential campaign, which garnered billions of views.

“I think we’re going to have to start thinking because, you know, we did go on TikTok, and we had a great response with billions of views, billions and billions of views,” Trump told the crowd at AmericaFest, an annual gathering organized by conservative group Turning Point. He added:

They brought me a chart, and it was a record, and it was so beautiful to see, and as I looked at it, I said, maybe we gotta keep this sucker around for a little while.

While the Senate passed legislation in April mandating ByteDance, TikTok’s Chinese parent company, to divest from the app due to national security concerns, Trump’s comments suggest he may seek to keep TikTok operational, albeit temporarily, despite the pending Supreme Court case.

TikTok faces a potential US ban on January 19, one day before Trump’s inauguration, if the court does not rule in ByteDance’s favour or divestiture does not occur.

However, Trump’s remarks point to a possible policy shift, citing the platform’s role in his campaign’s record-breaking engagement.

ByteDance’s ties to China

The legislative push against TikTok stems from fears that Chinese ownership poses a threat to US national security.

The Justice Department has consistently argued that ByteDance’s ties to China could allow sensitive user data to fall into the hands of the Chinese government.

Lawmakers widely support these concerns, leading to a bipartisan effort to pressure ByteDance to sell its stake in TikTok.

TikTok has countered these allegations, asserting that its US user data is securely stored on Oracle-operated servers within the country.

The company also insists that all content moderation decisions for American users are made domestically, distancing itself from claims of undue Chinese influence.

Despite TikTok’s reassurances, the Supreme Court has agreed to hear the case. A decision against ByteDance could lead to TikTok’s effective ban in the United States.

The timing of the court’s decision will be crucial in determining whether TikTok can avoid the impending restrictions.

Trump and TikTok

Trump’s campaign team leveraged TikTok effectively, achieving record-breaking viewership and engagement.

In his Phoenix speech, Trump reflected on the app’s value to his political strategy, suggesting it might warrant reconsideration.

The President-elect’s statement underscores his connection to the platform’s role in his outreach efforts.

Yet, Trump faces a significant challenge: balancing the platform’s influence with its perceived risks.

The Justice Department and lawmakers remain firm in their stance, arguing that maintaining TikTok in its current form endangers US interests.

Trump has not clarified how he intends to navigate these conflicting priorities, particularly given the Senate’s overwhelming support for divestiture.

TikTok CEO’s recent meeting with Trump adds another layer of complexity.

While Trump described the interaction as warm, his subsequent comments offered no definitive course of action.

Observers speculate that Trump’s administration might explore alternative measures to address security concerns without an outright ban or forced divestiture.

TikTok’s future in the United States

With a potential ban looming, TikTok’s future in the United States remains uncertain.

The company’s appeal to the Supreme Court marks a pivotal moment, as a ruling in its favour could allow continued operations without divestiture.

Conversely, an unfavourable decision would leave Trump’s administration with limited options.

The stakes are high, not just for TikTok but also for Trump’s policy credibility.

Any perceived leniency towards ByteDance could draw criticism from lawmakers and national security experts.

On the other hand, dismantling TikTok’s US presence could alienate millions of users and disrupt the platform’s thriving creator economy.

Trump’s willingness to reconsider TikTok’s position signals a pragmatic approach, but it is unclear whether this will translate into actionable policy.

For now, the platform’s fate hinges on judicial outcomes and the administration’s ability to craft a balanced resolution.

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In a fresh twist to the 1Malaysia Development Berhad (1MDB) scandal, the Malaysian state fund has launched a $1 billion legal claim against Amicorp Group and its CEO, Toine Knipping.

The claim, filed in the British Virgin Islands, accuses Amicorp of facilitating over $7 billion in fraudulent transactions between 2009 and 2014.

According to 1MDB, the corporate services provider played a critical role in the elaborate global money-laundering operation, which implicated high-ranking officials, including Malaysia’s former Prime Minister Najib Razak.

1MDB fraud case: allegations against Amicorp

The claim alleges that Amicorp Group and its CEO orchestrated a sophisticated network of fraudulent activities, using shell companies and sham transactions to obscure the origins and final destinations of billions of dollars.

These schemes reportedly involved jurisdictions such as Singapore, Barbados, Curaçao, Hong Kong, and the British Virgin Islands, enabling the systematic siphoning of funds.

Amicorp is accused of knowingly facilitating fraudulent transactions by creating complex financial structures.

These arrangements purportedly allowed massive sums intended for Malaysian public use to be diverted into private accounts.

The legal claim describes Amicorp’s alleged role as pivotal in enabling the conspiracy to flourish over five years.

What does the 1MDB lawsuit seek to achieve?

Since its establishment in 2009, 1MDB has been at the center of a global corruption scandal that exposed systemic failures across multiple institutions.

Malaysian and US investigators previously estimated that $4.5 billion was stolen from the fund, implicating officials from Malaysia and global financial institutions such as Goldman Sachs.

Najib Razak, Malaysia’s former Prime Minister, is currently serving a prison sentence for his involvement.

However, he continues to deny wrongdoing.

This latest legal action against Amicorp Group highlights how key facilitators allegedly operated behind the scenes, creating layers of financial opacity that made the fraud difficult to detect.

The scandal’s international dimensions are stark, with funds traced through major financial hubs.

The lawsuit claims that Amicorp’s practices allowed these funds to travel undetected across jurisdictions, exacerbating the challenge of recovering stolen assets.

1MDB’s lawsuit seeks to hold Amicorp accountable for its alleged role in enabling the fraud.

By pursuing $1 billion in damages, the state fund aims to recover a portion of the estimated $7 billion in misappropriated funds.

This legal claim also underscores the systemic failures that allowed the 1MDB fraud to persist.

Financial oversight institutions worldwide have faced scrutiny for their role in enabling or failing to prevent the misuse of public funds.

The scandal has prompted stronger regulations and increased due diligence requirements in global financial services.

As the lawsuit unfolds, it could set a precedent for addressing corporate complicity in large-scale corruption.

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News Corp has agreed to sell its Australian cable TV unit, Foxtel, to the British-owned sports network DAZN in a deal valued at A$3.4 billion ($2 billion), including debt.

This move reduces the Murdoch-controlled company’s exposure to a legacy business facing challenges from the rise of streaming platforms.

Under the agreement, News Corp will secure a 6% stake in DAZN and a board seat, signifying a strategic pivot for the global media giant.

The acquisition marks DAZN’s entry into the Australian market, where it plans to compete with established local and international streaming services.

With a population deeply invested in sports, DAZN’s expansion aligns with its strategy to become a global hub for sports content, a role it already plays in regions like Europe, North America, and Asia.

Foxtel’s decline, and DAZN’s Australian entry

Foxtel, which was launched in 1995, has struggled to maintain its profitability due to a significant shift in consumer preferences.

Traditional subscription models have lost ground to streaming platforms such as Netflix, and Foxtel’s premium pricing model has failed to attract cost-conscious consumers.

While the company has made efforts to modernize by introducing streaming services like Kayo, which covers popular Australian sports leagues, these have not reversed its overall decline.

DAZN’s acquisition of Foxtel offers an opportunity to disrupt the Australian streaming landscape.

By potentially introducing competitive pricing for its sports-focused streaming services, DAZN could challenge both traditional broadcasters and established platforms.

The sports broadcasting market in Australia is lucrative, with deals like the A$4.5 billion agreement between Foxtel-Channel Seven and the AFL running until 2031.

Similarly, Cricket Australia’s seven-year deal with the same partners is valued at A$1.5 billion.

Foxtel has often struggled to compete with free-to-air broadcasters and other streaming services due to soaring rights costs.

DAZN’s ability to leverage its global infrastructure and partnerships with leagues like Serie A, La Liga, and Bundesliga could reshape the market by delivering diverse sports content at competitive rates.

News Corp and its core publishing operations

For News Corp, the divestment of Foxtel underscores its strategy to focus on core publishing operations, including Dow Jones, HarperCollins, and its 61.4% stake in REA Group.

The valuation of Foxtel in this deal—seven times its projected 2024 EBITDA—allows News Corp to clear shareholder loans of A$578 million and refinance existing debt.

Telstra, another major stakeholder in Foxtel, is also exiting the business.

It has sold its 35% stake to DAZN for A$128 million in cash and a 3% equity share in DAZN.

Telstra’s move aligns with its focus on its telecom operations, which have delivered steady returns amidst the changing media landscape.

The transaction is expected to close in the second half of 2025, subject to regulatory approvals.

Given DAZN’s foreign ownership, the deal will require clearance from Australia’s Foreign Investment Review Board (FIRB).

DAZN’s majority shareholder, Len Blavatnik, is a dual US and British citizen, and his Access Industries portfolio, valued at over $35 billion, lends credibility to DAZN’s expansion plans.

Shares of News Corp rose by 3.5% to A$50.79 following the announcement, outperforming the broader ASX 200 index, which climbed 1.6%.

Telstra shares also gained 1.1%, reflecting market confidence in the deal’s long-term potential.

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Rolls-Royce share price has spectacularly performed this year, making it the best-performing company in the blue-chip FTSE 100 index. It has risen by about 95% this year, helped by the strong demand of its products and services. This growth has brought its market cap to over $61 billion. 

Rolls Royce business is thriving

Rolls-Royce stock price has done well this year, helped by the ongoing demand for its civil aviation, power, and defense. It has also done well because of the management’s strategy to cut costs and boost efficiency this year. 

The civil aviation industry is still seeing strong demand, as evidenced by the strong performance of top airline stocks in Europe and the United States. United Airlines stock has soared by over 140%, while IAG has become one of the best-performing FTSE 100 companies.

Rolls-Royce business does well when civil aviation is growing because of its business model. In addition to selling engines, the company also gets into long-term service contracts with airlines, which are paid per mile flown. This model helps to ensure that airlines don’t have to pay a lumpsum amount when the servicing comes due. 

It also helps to provide regular revenue to Rolls-Royce, which often sells its engines at very low margins. Sometimes, the company sells some of its engines for a loss and makes money over time in servicing contracts.

RR benefits from the aviation industry because it is one of the biggest manufacturers of these engines. It largely competes with General Electric Aviation and CFM International, a joint venture between GE and Safran. Its specialty is in the wide-body engines. 

Rolls-Royce share price has also soared this year because of the ongoing demand for defense equipment. Its defense business manufactures products used in flying, in marine, and in space. This industry has grown as geopolitical tensions have grown.

Additionally, Rolls-Royce has been a key beneficiary of the ongoing demand for power as the artificial intelligence business booms. That happened because of its power solutions that data center companies have embraced. It is also a top producer of the popular small modular nuclear reactors.

Read more: Rolls-Royce share price key levels to watch as rally stalls

RR is showing results

At the same time, the management has worked to lower the company’s costs by layoffs and shedding some of its unprofitable or non-core business. For example, it sold the Naval Propulsors & Handling and its Direct Air Capture business. 

The remaining company is more efficient, has higher margins, and the management hopes it will become more profitable. 

However, the main challenge is that its business is still seeing strong supply chain issues, especially in its defense business. Also, Boeing and Airbus, the two biggest aircraft manufacturers in the world, are facing substantial challenges.

Rolls-Royce’s business will do well this year as the management expects that its operating profit will be between £2.1 billion and £2.3 billion. Its free cash flow will also be between £2.1 billion and £2.2 billion. So, what next for the Rolls-Royce share price in 2025?

Rolls-Royce share price forecast

RR stock chart | Source: TradingView

The weekly chart shows that the RR stock price has been in a strong uptrend in the past few months. It has formed a rising wedge chart pattern, a popular bearish sign in the market.

At the same time, the Relative Strength Index (RSI) and the MACD indicators have formed a bearish divergence pattern. This pattern happens when these indicators are falling as the stock prices rise. 

Therefore, the combination of a wedge and a bearish divergence will means that the stock will either drop in 2025 or have weaker returns than this year. If this happens, the next point to watch will be at 500p.

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