Spotify unveiled significant changes to its app at its Stream On event Wednesday, including a new TikTok-esque scrolling discovery feed for music and video,
Canaccord analysts are on board with the refresh, prompting the firm to reiterate its ‘Buy’ rating and $150 price target.
“These announcements underscore the company's purported goal of evolving into a platform for multiple content types, and with solid ongoing execution, we think these efforts should support strong growth and improving profitability over time,” analysts said.
Shares of Spotify traded 2% lower at $124.45 Thursday afternoon.
Spotify’s goal with the redesign is to become more dynamic and help creators showcase their work. On the Home tab, in addition to their recently listened to music and podcasts, scrolling down will access a scrolling feed.
One step further, the company said it plans to integrate a new vertical video feed of short clips called Previews, done in the style of TikTok.
Spotify also announced Smart Shuffle, which recommends new songs that can be quickly added when a user is constructing a playlist, and Autoplay for Podcasts, which automatically starts new episodes based on algorithmic suggestions.
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