Spotify stock is under pressure after the music streaming platform’s first-quarter earnings showed signs that user growth is slowing down from its meteoric pace during the Covid-19 pandemic, amid heightened competition from Big Tech rivals.
Is Spotify stock a good investment?
Why Spotify Is the Stock I'm Most Excited to Buy in May
- International expansion. Although Spotify already boasts the largest audio streaming platform globally, the company announced during the first quarter that it would be expanding into more than 80 new markets.
- Early innings for podcasts. ...
- Flexing its pricing power. ...
Why Spotify stock price dropped?
The purchase prices were between $3.24 and $5.18, with an estimated average price of $4.11. The stock is now traded at around $3.730000. The impact to a portfolio due to this purchase was 0.25%. The holding were 446,733 shares as of 2021-12-31. Regis Management CO LLC initiated holding in Airbnb Inc.
Why is nobody talking about Spotify stock?
Spotify has removed the work of hundreds ... and that will be terrific for you,’ and they keep all the money,” he said. Nobody was talking about streaming comedy shows back then, but he ...
Should you invest in Spotify?
Pros:
- Good earnings growth quarter to quarter this year
- Squeezes out good revenue numbers on it's small base of assets (typical of a software company)
- Recurring subscription model which is all the rage in terms of business models these days
- Good branding - if someone says "streaming music service" I think "Spotify"
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Why is Spotify's stock dropping?
Shares of Spotify (SPOT -3.67%) collapsed by 32.7% in April, according to S&P Global Market Intelligence. The audio streamer reported better-than-expected earnings for the first quarter, but the stock was dragged down by the general sharp decline among consumer internet and technology stocks last month.
Is Spotify stock a good buy?
Spotify Technology S.A. (NYSE:SPOT) delivered a -39.63% return since the beginning of the year, while its 12-month returns are down by -49.40%. The stock closed at $141.28 per share on April 08, 2022. "Spotify is now the largest podcast platform by listeners in the United States.
Will Spotify bounce back?
Most recently, Spotify Technology reported $9.67 billion in revenues for fiscal 2021, marking a 23% increase since fiscal 2020 and 84% growth over a three-year period. In addition, SPOT is estimated to finish their fiscal 2022 with 20.40% revenue growth and increase another 16.6% for fiscal 2023.
How much has Spotify stock dropped?
Spotify Loses $2 Billion as Stock Plummets After Neil Young's Joe Rogan Protest. Spotify's market value dropped more than $2 billion in the last few days after Neil Young pulled his music over Joe Rogan's podcast. Shares have tumbled around 12% from where it closed last week.
Should I buy Spotify or Apple music?
While Apple Music offers better sound quality and is brilliant for those fully invested in the Apple ecosystem, Spotify wins out in terms of connectivity and podcasts. The two offer impressively vast libraries, though Apple Music's ability to expand on this via iCloud Music Library arguably gives it the edge there.
Is Spotify undervalued?
The Bottom Line on Spotify Stock At around 1.6 times sales, Spotify may prove to be undervalued if management can keep competitors at bay with unique offerings, perhaps beyond podcasts. For now, most Wall Street analysts are bullish, with a consensus upside potential of 61%.
Is Spotify going to split?
In it's F-1 registration, Spotify notes that these share prices and amounts all reflect a 40-to-one share split, which the company says is being done to “reduce the per share price of our ordinary shares to a more customary level for a newly listed company on the NYSE”.
Who are Spotify's competitors?
Spotify's top competitors include Noteflight, SoundCloud, Pandora, Deezer and TIDAL. Spotify is a provider of commercial music streaming services that offer restricted digital content from a range of record labels and artists. Noteflight is a company providing a music editing and sharing app.
What is Spotify's revenue?
Spotify annual revenueYearRevenue2016€2.93 billion2017€4.07 billion2018€5.24 billion2019€6.75 billion1 more row•May 4, 2022
Did Spotify lost 4 billion?
Spotify lost $4 billion in market value this week after rock icon Neil Young called out the company for allowing comedian Joe Rogan to use its service to spread misinformation about the COVID vaccine on his popular podcast.
Did Spotify lose 2 billion dollars?
Reports suggest that the music streaming platform has lost anywhere between $2 and $4 billion dollars after Neil Young pulled his music off the platform. But it isn't just Young, several other artists have also criticized the misinformation being spread on the Joe Rogan Experience, which is a Spotify exclusive podcast.
When will Spotify stock drop?
Predictably, multiple financial professionals and investors are speculating as to the precise source of the Spotify stock downturn, which has caused shares to dip to a level not seen since June of 2020.
How much is Spotify stock worth in 2021?
Spotify stock (SPOT) was worth $228.68 per share when the market closed today – an increase of 3.79 percent ($8.35) on the day.
How much did Spotify pay for JRE?
As an aside, Spotify reportedly paid $100 million for the rights to JRE and also hosts (undoubtedly expensive) podcasts from Michelle Obama as well as Barack Obama and Bruce Springsteen, to name some.
How many paid users does Spotify have in 2021?
Lastly, Spotify, after achieving material subscriber growth during 2020, noted in its Q1 2021 performance analysis that it had added just three million paid users – even after debuting in South Korea (population 52 million) without a free tier and expanding into a multitude of other nations yet.
Is SPOT worth it in 2020?
Plus, the figure remained flat from Q4 2020. Expanding upon the idea, SPOT, in spite of turning in noteworthy losses thus far in 2021, is still worth a full $36 or so more than it was on May 21st, 2020.
What happened
Shares of music streamer Spotify Technology (NYSE: SPOT) are following all the other tech stocks down on Tuesday. Its stock is off 5.1% as of 2:05 p.m. EST -- and maybe that's understandable. But it's still not right.
So what
On the one hand, sure, tech investors look spooked today by a sudden broad-based morning sell-off in tech stocks. And yes, it's also true that Spotify in particular got some bad news, when StreetInsider.com reported that analysts at Atlantic Equities have downgraded the stock to neutral.
Now what
Already, I think you'll agree that's at least two votes to one in Spotify's favor -- and all three analysts agree that the stock looks underpriced today.
Double-digit growth wasn't enough to please investors
Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things. Follow @TravisHoium
What happened
Shares of streaming music and podcast company Spotify Technology ( NYSE:SPOT) fell as much as 18.9% in early trading on Thursday after reporting fourth-quarter results. Shares were down 15.9% at 11:50 a.m. ET today and were bouncing near a 52-week low.
So what
Spotify reported a 24% increase in revenue in the quarter to $2.7 billion as total monthly active users jumped 18% to 406 million. The company reported a net loss of $39 million, or $0.21 per share. On an adjusted basis, the loss was $0.24 per share, which easily bettered the $0.48 loss that analysts expected.
Now what
Investors seem to be disappointed by the rate of growth Spotify is expecting and the fact that management is no longer giving full-year guidance. But looking at the company's trends, I still think this is a solid business.
One single downgrade seems to be ruining a good day for the streaming service
I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.
What happened
Shares of music streamer Spotify Technology ( NYSE:SPOT) are following all the other tech stocks down on Tuesday. Its stock is off 5.1% as of 2:05 p.m. EST -- and maybe that's understandable. But it's still not right.
So what
On the one hand, sure, tech investors look spooked today by a sudden broad-based morning sell-off in tech stocks. And yes, it's also true that Spotify in particular got some bad news, when StreetInsider.com reported that analysts at Atlantic Equities have downgraded the stock to neutral.
Now what
Already, I think you'll agree that's at least two votes to one in Spotify's favor -- and all three analysts agree that the stock looks underpriced today.
What happened
As of Friday afternoon, shares of Spotify (NYSE: SPOT) had tumbled about 12% from where they closed last week.
So what
The latest imbroglio began after Rogan hosted Dr. Robert Malone, who discussed "mass formation psychosis" -- essentially a form of mass hysteria in relation of COVID-19 -- and the episode was immediately branded as misinformation.
Now what
Spotify paid Rogan $100 million in 2020 to bring his brand to the streaming service, so it seems unlikely it would be willing to jeopardize that investment, especially with the massive audience the podcaster brings with him.
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How does Spotify work?
Spotify is betting on a more open and flexible podcast platform than that of a company like Apple ( NASDAQ:AAPL) because it is betting it can win on the merits. In other words, Spotify thinks creators will want to host podcasts on its platform because they can find more listeners there and monetize better than on any other platform. Here are the steps to look for in the strategy: 1 Open up the platform to more creators and listeners. 2 Attract a large number of creators and listeners. 3 Build the tools to match listeners and creators effectively. 4 Build a monetization platform to make podcasts profitable for creators than on other podcast platforms, whether they choose subscriptions or ad-supported content.
Who owns Apple and Spotify?
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool 's board of directors. Travis Hoium owns shares of Apple and Spotify Technology. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, and Spotify Technology.
Why do podcasts need to be hosted on Spotify?
In other words, Spotify thinks creators will want to host podcasts on its platform because they can find more listeners there and monetize better than on any other platform. Here are the steps to look for in the strategy: Open up the platform to more creators and listeners.
Can you use Spotify as a podcast player?
Podcasts created using Spotify's free-to-use platform Anchor, for example, can be listed to on other podcast players and podcasters can even create subscription business models elsewhere and use Spotify as a player. This is intended to build the number of creators on Spotify.
Is Spotify a podcast?
First and foremost, Spotify is trying to build a platform that is the top choice of creators. That involves both building tools to attract new podcasters and paying creators for exclusive content, like The Joe Rogan Experience, which draws in more listeners to find other creators. Interestingly, Spotify has done this with a fairly open platform rather than locking creators into the Spotify platform. Podcasts created using Spotify's free-to-use platform Anchor, for example, can be listed to on other podcast players and podcasters can even create subscription business models elsewhere and use Spotify as a player. This is intended to build the number of creators on Spotify.
Is Spotify advertising?
Advertising is the key to unlocking Spotify's growth. The long-term thesis for Spotify is that it will create a marketplace of creators and listeners that will be extremely attractive to advertisers, who will ultimately finance the podcast creator economy.
Is Spotify growing?
It's important to understand how Spotify plans to grow its business long term. There are really two sides of the market the company is building right now: creators and listeners. In both areas, we're seeing signs of growth.
How much is Spotify's revenue in 2021?
Spotify Technology issued an update on its FY 2021 earnings guidance on Wednesday, May, 5th. The company provided earnings per share (EPS) guidance of - for the period. The company issued revenue guidance of $10.99 billion-$11.47 billion, compared to the consensus revenue estimate of $11.32 billion.
How much money does Spotify make?
How much money does Spotify Technology make? Spotify Technology has a market capitalization of $43.13 billion and generates $9.00 billion in revenue each year . The company earns $-663,680,000.00 in net income (profit) each year or ($3.54) on an earnings per share basis.
What does "hold" mean in stocks?
A hold rating indicates that analysts believe investors should maintain any existing positions they have in SPOT, but not buy additional shares or sell existing shares. View analyst ratings for Spotify Technology or view top-rated stocks.
Is Marketbeat better than Spotify?
What stocks does MarketBeat like better than Spotify Technology? Wall Street analysts have given Spotify Technology a "Hold" rating, but there may be better buying opportunities in the stock market. Some of MarketBeat's past winning trading ideas have resulted in 5-15% weekly gains.
