- Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google decided to allow Spotify Technology SA (NYSE:SPOT) and other app developers to offer users an alternative third-party payment option alongside Google Play's option.
- KeyBanc analyst Justin Patterson saw the move as a win for digital content providers.
- He viewed alternative payment options as a happy compromise that calmed regulators and large developers without sacrificing Google Play Store revenue or trust and safety.
- Patterson considers this as a general positive for Spotify, an event that reduced EBITDA risk toward Match Group Inc (NASDAQ:MTCH), and a call option for Duolingo Inc (NASDAQ:DUOL).
- Deutsche Bank analyst Benjamin Black sees the move reducing friction for potential new Spotify subscribers and driving incremental subscription adds given the more seamless customer onboarding experience.
- Faster subscriber growth for Spotify was also positive for Warner Music Group Corp (NASDAQ:WMG) and Universal Music Group NV (OTC:UMGNF).
- JPMorgan called out the move as positive for Bumble Inc (NASDAQ:BMBL) and Match.
- Benchmark saw the move benefitting margins.
- Price Action: SPOT shares traded lower by 3.06% at $144.02 on the last check Thursday.
