Spotify Stock Is Surging Today: Here's Why

Spotify Technology S.A. SPOT shares are trading higher Wednesday on reports the company will raise monthly subscription prices.

What To Know: Spotify plans to raise the price of its music streaming service by approximately $1 to $2 per month in several key markets, according to Bloomberg.

The price increases are expected to impact five markets by the end of April including the UK, Australia and Pakistan. People familiar with the matter also said the company plans to raise prices in the U.S. later this year.

The report indicates that the price increases are expected to help cover the cost of audiobooks, which Spotify introduced late last year. As part of paid subscription plans, customers get up to 15 hours of audiobook access each month.

Spotify is also expected to introduce a new basic subscription plan that will exclude audiobook access for around the same price that the current individual plan sells for. Basic plan users will have to pay for audiobooks.

See Also: Over 200 Artists, Including Billie Eilish And Katie Perry, Demand AI Respect For Music Rights

How To Buy SPOT Stock

By now you're likely curious about how to participate in the market for Spotify — be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. In the the case of Spotify, which is trading at $286.79 as of publishing time, $100 would buy you 0.35 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading — either way it allows you to profit off of the share price decline.

SPOT Price Action: Spotify shares were up 5.68% at $284.88 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.