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Why Spotify Stock Surged Today

By Joe Tenebruso – May 19, 2020 at 5:40PM

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A major deal with a big-time podcast producer drove shares sharply higher.

What happened 

Shares of Spotify Technology (SPOT -3.41%) jumped more than 8% on Tuesday after the digital music company announced a blockbuster partnership. 

So what 

Spotify signed popular podcast personality Joe Rogan to an exclusive multiyear licensing deal. The Joe Rogan Experience is one of the most downloaded podcasts in the world, with an engaged and loyal fan base.

"From his earliest days behind the mic, Joe has been a commentator, fixture, and driving force in culture helping to lay the foundation for the podcasting renaissance we are experiencing today," Spotify said in a press release.

Joe Rogan

Shares of Spotify popped on Tuesday after the streaming music service announced an exclusive deal with Joe Rogan. Image source: Spotify.

Now what 

Spotify is investing aggressively to expand its podcast offerings. The music streaming platform believes that bagging some of the rapidly growing industry's biggest names will help to differentiate it from its competitors, such as Apple Music and Amazon Music.

Spotify said that The Joe Rogan Experience "will remain free and accessible to all Spotify users." The show will debut on Spotify on Sep. 1, and it will become exclusive to the platform later in 2020.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Apple, and Spotify Technology and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Spotify Technology Stock Quote
Spotify Technology
$91.40 (-3.41%) $-3.23
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$146.40 (0.20%) $0.30
Amazon Stock Quote
$120.95 (-0.12%) $0.14

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