Audio streamer Spotify (NYSE:SPOT) announced today that its only hardware product, Car Thing, will stop working on December 9th, just three years after its release. Initially launched on an invite-only basis in April 2021, it went on general sale in February 2022 for $90. However, Spotify stopped producing it just five months later due to low sales volumes and rising costs, which led to a $31 million charge. Despite this setback, investors weren’t bothered at all, as shares are up in today’s trading.
Spotify advised users to dispose of their Car Thing devices as there would be no trade-in options or replacement versions. This announcement has caused disappointed users to ask Spotify, through online forums, to open-source the device’s code and firmware to extend its life. Nevertheless, a Spotify spokesperson explained that the purpose of Car Thing was to understand in-car listening habits, and with production halted since July 2022, it’s now time to say goodbye to the device.
Is SPOT a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SPOT stock based on 15 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 108% rally in its share price over the past year, the average SPOT price target of $346.28 per share implies 12.75% upside potential.
