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Why Spotify Stock Surged Today

By Joe Tenebruso – Jun 18, 2020 at 2:54PM

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Kim Kardashian West and an entire universe of iconic superheroes are coming to the fast-growing streaming platform.

What happened

Shares of Spotify (SPOT -3.36%) jumped on Thursday after the digital music company announced not one but two blockbuster deals. As of 3:30 p.m. EDT, Spotify's stock was up more than 12%. 

So what

Kim Kardashian West is set to bring her millions of fans to Spotify. The popular reality TV star signed a deal to co-host a new podcast focused on criminal justice reform, according to The Wall Street Journal. The show, which will be co-hosted by television producer Lori Rothschild Ansaldi, will be exclusive to Spotify's platform. 

A person in a business suit is pointing to an upwardly sloping line.

Shares of Spotify popped on Thursday after the streaming leader announced a couple of major new partnerships. Image source: Getty Images.

Spotify also struck a deal with Warner Bros. and DC that will bring a slew of popular comic book heroes to its podcasts. The partnership spans the entire DC Universe -- including iconic characters such as Batman, Superman, and Wonder Woman -- as well as other Warner Bros. Studio series. DC and Warner Bros. will also create new characters and storylines that will debut on Spotify. 

Now what 

Spotify is investing heavily to bring some big-time stars -- and now, superheroes -- to its listeners. In May, Spotify agreed to pay more than $100 million to Joe Rogan to move his popular podcast exclusively to its platform. 

By locking up some of the industry's biggest stars, Spotify is seeking to differentiate itself from its formidable rivals, which include the mighty and Apple.

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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