Technology stock

Why Spotify Technology Stock Jumped 13.5% on Monday

What happened

Shares of the music and podcast streaming company Spotify Technology (NYSE: SPOT) jumped as high as 13.6% on Monday as growth stocks rallied well across the board. Shares closed with a 13.5% gain, near their high for the day.

So what

The biggest news for Spotify today is the company’s handling of the fiasco between Neil Young and Joe Rogan. Last week, Young said he wanted to quit Spotify’s platform unless he removed Joe Rogan, which Spotify clearly wasn’t going to do given Rogan’s popularity.

Image source: Getty Images.

Today Joe Rogan gave a lengthy video explanation and Spotify CEO Daniel Ek described his intention to provide a content advisory to any episode dealing with COVID-19. The CEO also tried to allay user and investor concerns about the company’s reactions to these concerns, which may have taken longer than expected.

Now what

While Spotify might be in the news for this today, it’s likely the controversy will pass fairly quickly, and the reality is that Neil Young no longer on the platform will have a very small impact on Spotify’s business. . Rogan, on the other hand, is the most popular podcast on Spotify and is a flagship product of the company.

It doesn’t hurt that growth stocks are up today, but I think it’s also good that we’re seeing Spotify’s likely demise in the headlines. Investors also seem to like putting controversy behind the company.

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Travis Hoium owns Spotify technology. The Motley Fool owns and recommends Spotify technology. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.