Spotify's stock (NYSE: SPOT) has experienced a slight cooldown after reaching unprecedented heights of $500 per share and achieving a $100 billion market cap. Currently trading around $470, the stock remains up 149% year-to-date despite a 2.6% daily decline.

This valuation disparity is particularly noteworthy when compared to major record labels. Warner Music (NASDAQ: WMG) is down 10% YTD at $32.34, while Universal Music (Euronext: UMG) has fallen 9% to $24.77/€23.54. Remarkably, Spotify's market value now exceeds the combined value of these major labels by nearly $33 billion.

Several key factors have contributed to Spotify's strong performance:

• Successful diversification beyond music
• Renewed focus on profitability
• Consistent operational improvements
• Strong institutional investor confidence

Recent insider trading activity has been significant:

• CEO Daniel Ek: Multiple sales of 75,000 shares each, totaling over $107 million
• CTO Gustav Söderström: $10.3 million in stock-option shares
• Public Affairs Head Dustee Jenkins: $5.2 million in stock-option shares

Long-term investors remain bullish, with firms like Rowan Street Capital maintaining strong positions. The Guardian Fund has projected SPOT could reach $1,750 by 2030.

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