Read How Analysts Reacted To Google's Pact With Spotify

  • Alphabet Inc GOOG GOOGL Google decided to allow Spotify Technology SA SPOT and other app developers to offer users an alternative third-party payment option alongside Google Play's option.
  • KeyBanc analyst Justin Patterson saw the move as a win for digital content providers. 
  • He viewed alternative payment options as a happy compromise that calmed regulators and large developers without sacrificing Google Play Store revenue or trust and safety. 
  • Patterson considers this as a general positive for Spotify, an event that reduced EBITDA risk toward Match Group Inc MTCH, and a call option for Duolingo Inc DUOL.
  • Deutsche Bank analyst Benjamin Black sees the move reducing friction for potential new Spotify subscribers and driving incremental subscription adds given the more seamless customer onboarding experience. 
  • Faster subscriber growth for Spotify was also positive for Warner Music Group Corp WMG and Universal Music Group NV UMGNF.
  • JPMorgan called out the move as positive for Bumble Inc BMBL and Match.
  • Benchmark saw the move benefitting margins.
  • Price Action: SPOT shares traded lower by 3.06% at $144.02 on the last check Thursday.
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