SPOTIFY stock was trading at $90.82 as of 12:54 PM EDT.
In an effort to increase platform security, Spotify Technology (NYSE:SPOT) said on Wednesday that it had acquired Dublin, Ireland-based Kinzen. The deal’s financial details weren’t made public. Kinzen is an expert in guarding against hazardous content in online forums. Its system analyzes potentially damaging information and hate speech in numerous languages and nations using a combination of machine learning and human knowledge.
Since 2020, the business has collaborated with Spotify (NYSE:SPOT), first concentrating on the accuracy of election-related content. The acquisition will give the audio streaming service early alerts about issues in various markets, allowing it to more efficiently censor content in multiple languages.
According to Sarah Hoyle, Spotify’s head of trust and safety, Kinzen provides a combination of tools and knowledge to assist us in better understanding the content on our platform and new misuse trends. Just after the market opened, shares of Spotify (NYSE:SPOT) were down about 2%.
Overview of the Spotify stock
Despite Spotify’s better-than-anticipated Q2 2022 report, we nevertheless advise shareholders to sell their shares since the worst is still to come.
With the current macroeconomic environment, we don’t anticipate Spotify to earn a sizable profit, hence we don’t think the company has a positive risk-reward profile.
The stock of Spotify will probably continue to be under pressure due to slower-than-anticipated post-pandemic subscription growth, inflationary pressures, unrest in Europe and Asia, and currency problems.
We think Spotify is caught in a vicious loop where it has to spend money to grow. This should have an effect on revenue.
At the current price of $87, Spotify is trading 71% below its 52-week high. We advise investors to sell Spotify in anticipation of continued price pressure.
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Author Jowi Kwasu 
