Fineco traders have been selling Spotify stock

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Even with a big shift into streaming, the music business has been a big money maker over the years. Companies are jostling for position in this new age and although Spotify is sitting on top of the hill, recently traders have been selling their stock.

Let’s take a look at what’s going on with these shares and see what other companies are trading heavily right now.


What do we know about Spotify (SPOT) stock?

It looks like there’s been a recent sell-off of shares from the music streaming giant. According to data from FinecoBank, traders have been selling a lot of Spotify stock, with 100% of the trading volume coming from sellers.

There are a few potential reasons why this is happening:

  • Although Spotify still has the majority market share in music streaming, the company is facing increasing levels of competition from big tech rivals
  • Spotify has been performing well for years but there are fewer opportunities for the company to grow these days
  • Spotify is spending a lot of money on content and building its podcast side of the business, which will affect its balance sheet and finances

All that being said, Spotify is digging in for the long-haul. Even if its growth is slowing, it’s still the market leader in music streaming by a decent margin. You should also consider that the company’s costly podcast investments could pay off in time.

Other than Spotify stock, what’s interesting traders?

There are a number of companies out there keeping traders on their toes. Here’s a breakdown of some of the most notable activity on the Fineco platform this week.

Natwest Group (NWG)

This was the top mover globally, seeing a 50/50 split between traders buying and selling the stock.

A recent announcement laid out Natwest’s ambitious plans to team up with three other global banks to create a platform for buying and selling carbon credits. The initiative called ‘Project Carbon’ will aim to bring more liquidity and transparency to the voluntary carbon marketplace. It’s an admirable move by the bank, but clearly one that has received a mixed response amongst traders.


J Sainsbury (SBRY)

Just behind Natwest as a stock attracting global attention was J Sainsbury, with another even split between buys and sells.

Supermarkets have been in the financial news a lot recently following the Morrisons bidding war. This has sparked renewed interest in other big UK shops with some believing they are undervalued stocks. Sainsburys reported a rise in sales and this has added to the buzz, with some analysts believing they’re next in line for a takeover bid. Others believe this is all just hot air.

Nio (NIO)

In the USA, this electric vehicle (EV) company was attracting the most attention, with 47% seeing more upside and 53% selling the stock.

The EV market continues to grow, and Nio has managed to successfully increase its vehicle output by 112% compared to Q2 2020. EV stocks remain sought after by traders. But some believe that a lot of potential growth has already been priced in. This is why we’re seeing an almost equal division between buyers and sellers.

How can I invest in Spotify stock and others?

If you plan on trading frequently, using a cheap share dealing account is a good way to try and keep your costs down. Making use of something like the FinecoBank stocks and shares ISA will also reduce tax responsibilities when you are buying and selling.

However, it’s also worth considering a long-term approach. it’s a good idea to seek companies to invest in for the years ahead rather than making quick trades.

Just remember that with any investing your money is at risk. You may get out less than what you put in. So be sure to consider any moves carefully before pulling the trigger.

Please note that tax treatment depends on the specific circumstances of the individual and may be subject to change in the future.

The post Fineco traders have been selling Spotify stock appeared first on The Motley Fool UK.

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