Key points:
- 7Digital shares rallied 162.2% after it won a three-year contract with Pinterest.
- As a result, Pinterest users will have access to 7Digital’s music catalogue.
- Investors cheered the move, given Pinterest’s 400 million MAUs.
The 7Digital Group PLC (LON: 7DIG) share price rallied 162.2% after revealing that it had won a new contract with Pinterest (NYSE: PINS). The platform has over 400 million monthly active users (MAUs) and markets itself as a visual discovery engine that inspires people globally.
The B2B music streaming service noted that it had signed a three-year contract with Pinterest to allow the platform’s music library to include licensed commercial tracks delivered via 7digital’s music-as-a-service platform. The licensed commercial tracks will be used alongside Pinterest’s current royalty-free music.
Also read: Five Best Starter Stocks For Beginners.
Furthermore, Pinterest also revealed that it had entered into partnerships with leading global music labels Warner Music Group, Merlin, Warner Chappell Music and BMG to bring the top artists today and their music to its platform delivered by 7digital’s technology.
The contracts will allow Pinterest users to access music tracks from global superstars such as Ed Sheeran, Anitta, Silk Sonic and many others, which they can add to their idea Pins on the Pinterest platform.
7Digital clarified that the contract would give Pinterest users access to its comprehensive music catalogue. However, the two companies did not disclose the deal’s financial terms. Still, investors were pleased by the contract given Pinterest’s massive, engaged user base, leading to the massive rally in 7Digital’s share price.
Paul Langworthy, 7digital’s CEO, said: “We’re excited to integrate with Pinterest to provide their community with an innovative and powerful way to share music and creativity that will generate immersive new experiences for the Pinterest community. This contract reflects the strength of 7digital’s end-to-end offering, our global catalogue, and our ability to meet and serve the growth in music consumption on platforms at scale. We look forward to supporting the launch of enhanced music features on the Pinterest app and working with them to power new momentum in the creator experience.”
So, would I buy 7Digital shares? Unfortunately, the short answer is no. After today’s parabolic rally, we will most likely get a significant pullback in 7DIG shares. Therefore, waiting for a pullback before buying the stock is a better move.
*This is not investment advice.
7Digital share price.
7Digital shares rallied 162.22% to trade at 0.590p, rising from Tuesday’s closing price of 0.225p.