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Spotify Stock vs Bitcoin: which of the two investments has produced the highest returns over time?
In reality, the shares of Spotify Technology S.A. (SPOT) have been listed on the New York Stock Exchange only since April 2018, so they have a more limited history than Bitcoin, which has been listed since 2010.
Their placement price was about $149, while now, more than two years later, it has risen to $192.
As a result, in two years they have returned, for now, just under 30%.
However, over the months the stock has fluctuated significantly. For example, in August 2018, after only a little more than three months of trading, it reached its all-time high of about $194 and then plunged to $102 in December of the same year.
Basically, in 2018, it went down 47% in just over four months.
However, by January 2019 the price had already risen to $130, while in the following months it continued to fluctuate several times in a range between $110 and $160.
The last collapse occurred in mid-March 2020, at the same time as the global financial markets collapsed when it fell to $109, but it has since recovered, first rising to around $140 in mid-April, and then rising to $192 on May 21st.
Taking the individual years, in 2018 it closed with -25%, in 2019 it closed with +31% and in this 2020, for now, it is recording +30%.
The price path of bitcoin has been slightly different.
In April 2018, when the Spotify stock landed on the market, BTC was worth about $7,300, while now it is around $9,000. So in the same period when SPOT registered a +30%, BTC registered a +24%.
However, over the course of the months, it has recorded much greater fluctuations, with a low of $3,200 in December 2018, and a high of almost $13,000 in June 2019. Thus the movement was over 300%.
Taking the individual years, in 2018 it closed with -50% from April to December, in 2019 it closed with +90%, and in this 2020, for now, it is recording +28%.
In other words, from April 2018 until today, and during 2020, the performance of the two assets in percentage terms is absolutely comparable, while the interim fluctuations have been much more pronounced for Bitcoin.
It must be said, however, that Spotify’s stock has a very volatile price compared to other listed stocks or the NYSE Composite index, which has fluctuated much more moderately than Spotify’s stock from April 2018 to date, with the exception of the market crash in mid-March 2020.