Spotify's brand will appear on the Spanish soccer club's uniforms for four years
The shares of Spotify Technology Sa (NYSE:SPOT) are up 2.2% to trade at $126.58 ahead of the bell, after the streaming platform announced a major sponsorship deal. Specifically, Spotify signed a stadium and shirt deal with FC Barcelona, in which the company's brand will appear on the Spanish soccer team's jerseys for the next four seasons.
Today's positive price action is giving Spotify stock a nifty little bump, as it's coming off a March 14 two-year low below the $120 level. Pressured by the 20-day moving average over the course of 2022, SPOT has shed 47.1% year-to-date. Longer-term, the equity is off by more than 56% year-over-year.
Sentiment surrounding the stock has been less than stellar of late. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SPOT’s 50-day put/call volume ratio of 1.28 sits higher than 98% of readings from the past year. This indicates long puts have been picked up at a much quicker-than-usual clip in the last 10 weeks.
Short sellers are piling Spotify stock as well, with short interest up nearly 31% in the last two reporting periods. The 6.34 million shares sold short now account for a 4.5% of the stock's available float, or more than two days' worth of pent-up buying power.