Spotify stock hit an all-time high on the New York Stock Exchange on Friday, January 8th.
The streamer’s stock reached $354.60 on Friday, and closed at $353.48, up 7% for the day and 12.2% for the week.
Why did Spotify stock rise?
Overall, stocks have been performing strongly across most sectors, and Bank of America also recently increased its Spotify target price from $357-per-share to $428.
“36% Overvalued”
At Friday’s high, Spotify’s value rose to $66.1 billion and that puts its total stock valuation above what most analysts see as the company’s true value.
Spotify stock is at least 36% overvalued “even under very generous inputs,” according to analyst Edgar Torres H on Seeking Alpha. “Therefore, I recommend investors pass up on Spotify for now, but look for a potential entry if the stock revisits $225.”
