Shares of audio platform Spotify Technology (NYSE:SPOT) are trading lower today following the Wall Street Journal’s report that TikTok parent ByteDance will significantly expand its music-streaming service, implying more competition for Spotify.
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According to the WSJ report, ByteDance is holding discussions with music labels globally with an aim to significantly broaden the footprint of its music service business.
At present, ByteDance’s Resso music streaming service is available to music lovers in Brazil, India, and Indonesia. The company plans to launch the service in many other countries except the U.S. for now, as highlighted by the WSJ report.
Is Spotify Stock a Buy, Sell or Hold?
On TipRanks, analysts are cautiously optimistic about the SPOT stock and have a Moderate Buy consensus rating, which is based on 10 Buys and four Holds. Spotify stock’s average price forecast of $142.14 implies 75.5% upside potential.
Concluding Thoughts
There is no certainty about ByteDance’s expansion plans, with many hurdles to leap in the process. However, if it is successful in the integration of its music service with TikTok and the subsequent formation of a giant music platform, it could bring huge competition for Spotify.
