Technology stock

SPOT, Joe Rogan spat rumbles

  • Spotify shares ended Monday down 1.67%.
  • Argument over Joe Rogan podcast rumbles as Spotify CEO speaks out.
  • SPOT’s CEO says silencing Joe isn’t the answer.

Spotify (SPOT) shares have been booming (see what I did there) all over the place lately, as tech and growth names take a hit and investor enthusiasm for the sector wanes . Tech names have been very volatile over the past week as Facebook bombed and then Amazon exploded. Spotify then had enough volatility without the growing furor over the Joe Rogan experiment. This is an extremely popular podcast that Spotify reportedly paid around $100 million for.

Spotify Stock News

Spotify CEO Daniel Ek was on the wire Monday to apologize to Spotify workers for the public drama on the Joe Rogan podcast. To recap, Neil Young removed his music from Spotify after some content from the Joe Rogan Experience was described as controversial and could possibly be considered a covid vaccine stance.

“While I strongly condemn what Joe said and agree with his decision to remove past episodes from our platform, I realize some will want more,” Ek said in the memo.

The fight took a new turn late last week when Grammy-winning artist India Arie posted a compilation video on Instagram apparently showing Joe Rogan using racial slurs. (We haven’t seen the video). She captioned the video #deletespotify. Joe Rogan apologized, saying it was “a most regrettable and shameful thing”.

Now, a new twist has appeared in the ongoing rumble with news that Rumble has offered Joe Rogan $100 million to move his podcast to their platform. Rumble is a YouTube-esque video-sharing platform that has exploded in popularity during the pandemic. So much so that Rumble must be made public via a SPAC agreement with CF Acquisition Corp VI (CFVI). CFVI stock closed up more than 18% on the announcement of the offer on Monday.

Spotify Stock Forecast

We don’t know how this will turn out. We think Rumble is unlikely to succeed given that Spotify has an exclusive deal with Joe Rogan. Technically, the chart is strongly bearish. Recent SPOT earnings have made this worse, but we can see a sign of hope. SPOT returned most of the pandemic gains. This happens to many high-growth tech names. Basically, the pandemic has been the loosest monetary policy in history and stocks have surged accordingly. Now that times have changed, it’s time for a much-needed fix. $150 is the checkpoint and therefore strong support. We also note the strong bearish divergence from the Relative Strength Index (RSI).

SPOT chart, daily

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