Shares of Spotify (NYSE: SPOT) jumped in morning trading on Friday after activist investor ValueAct Capital Management disclosed a stake in the streaming company.
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ValueAct CEO Mason Morfit did not disclose the size of the investment in Spotify but commented, “Spotify’s superpower was combining engineering breakthroughs with organizational abilities — it organized creators and copyright owners to build an entirely new economic model that benefited everyone involved.”
Spotify has seen multiple analyst upgrades following the company’s surge in monthly active users (MAUs) in Q4.
Analysts are cautiously optimistic about SPOT stock with a Moderate Buy consensus rating based on 13 Buys and seven Holds.