Content ControversyMusic streaming platform Spotify has been drawing plenty of heat recently following a row which erupted just a fortnight ago. Folk-rock icon Neil Young called on Spotify to make a choice between having his music on their platform or Joe Rogan’s podcasts. Young took aim at Spotify over the content of Rogan’s podcasts, specifically with regard to the information he has shared about vaccines (Rogan is anti-vaccine), which Young claimed is false and harmful.Neil Young & Joni Mitchell Pull Their MusicHowever, Spotify refused to back down went ahead with Young’s request, removing his music from the platform. Since then, however, several other major artists, including Joni Mitchell, have followed suit and demanded their music be taken down in solidarity with Young. The issue has snowballed and drawn plenty of attention online with Spotify attracting massive criticism over the event. Shares in the company plunged by almost 30% before rebounding in recent days.Rogan ApologisesRogan published an apology broadcast, admitting that some of his content was a little carried away and pledged to be more balanced going forward. Spotify also declared that they will now publish a “content advisory” warning along with Rogan’s podcasts and any other such series deemed controversial. Since then, shares have rebounded with price almost back to where it was ahead of the event unfolding.However, the issue potentially caused a seismic shift in Spotify’s fanbase, still drawing plenty of attention online. Along with rumours of other huge names due to follow suit, Taylor Swift’s fans have been calling for her to remove her music, which would be a massive blow to the platform if it happened.Spotify Earnings DueLooking ahead, Spotify is due to report Q4 2021 earnings later today. EPS is estimated at -$0.58 with revenues expected at $3.015billion. This would mark a decline in earnings from the prior quarter’s -$0.48 reading but an uptick in revenues from the prior quarter’s $2.896billion.Technical ViewsSPOTThe rally off the 167.02 level and bear channel low in Spotify has seen the market trading back up to test the 202.54 level. With both MACD and RSI turning firmly higher here, the rebound looks in good shape. Th e big test now will be the 218.44 level and bear channel top. An earnings beat today could fuel a break of that region. However, if price fails to break above there, the focus remains on further downside near-term.
Source: Tickmill
