Share prices of Spotify (SPOT -0.57%) dropped as much as 10.9% in early trading on Wednesday after the company announced first-quarter earnings. Wall Street analysts apparently were disappointed by a mere 24% monthly active user growth to 356 million users, and that was enough to send shares lower despite otherwise impressive results.
Why does Spotify lose so much money?
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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.
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 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 ...
Why is Spotify stock dropping?
Spotify SPOT, -1.10% added 1 million fewer subscribers in the first quarter than analysts projected, even after those analysts reduced estimates following a disappointing forecast from company executives three months ago.
Is Spotify a good stock to buy now?
Profitability and an Attractive Valuation for SPOT Stock Analysts, on average, expect Spotify's earnings per share (EPS) to come in at 4 cents this year and $1.11 in 2022. The most optimistic analyst expects the company to generate 2023 EPS of $3.29.
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.
What is the future of Spotify?
Spotify is producing weak bottom-line growth Its monthly active users (MAUs) rose 27% to 345 million in 2020, then improved 19% year over year to 381 million in the third quarter. For the full year, Spotify expects its revenue to grow 21% to 23% and its MAUs to increase 16% to 18%.
Is Spotify a Buy Sell or Hold?
Spotify Technology has received a consensus rating of Hold. The company's average rating score is 2.48, and is based on 13 buy ratings, 11 hold ratings, and 1 sell rating.
Is Spotify undervalued?
Spotify (NYSE:SPOT) is a growth stock, and unfortunately, growth stocks often bring volatility along with them. Investors need to account for price fluctuations when adding it in their portfolio.
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”.
How Low Can Spotify go?
Music qualitySpotify freeWeb playerAAC 128kbit/sDesktop, mobile, and tabletAutomatic: Dependent on your network connection Low: Equivalent to approximately 24kbit/s Normal: Equivalent to approximately 96kbit/s High: Equivalent to approximately 160kbit/s
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.
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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Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.
Focus on the business, not the stock
Long-term, it's business results that will drive investment gains, not short-term stock movements. And Spotify's business is performing pretty well.
Advertising is Spotify's future
Spotify is known for music, but most of the company's investments have been in podcasts in recent years. If the company can become a go-to podcast service for users, it will be able to attract more podcast talent and advertising dollars.
A value in technology stocks
After dropping over the past year, Spotify's stock is a solid value by many metrics. Shares only trade for about three times revenue, which is a steal compared to most technology stocks.
The Motley Fool
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.