Entry 24.05/07
296.00
Stop-Loss
266.00
Target 24.11/13
443.00
Target Price Achievement 49.66%
  • Investing Points
  • Stock Attractiveness

 

Spotify, Continued Subscriber Growth... Increased Optimism for Profit Turnaround This Year

■ Recommended Stock Trading Strategy

  • Stock Name: Spotify Technology (SPOT)
  • Recommendation Price: $296~303
  • Target Price: $385
  • Stop Loss Price: $266
 

■ Investment Points

  • Turnaround to Operating Profit, Largest Quarterly Operating Income Ever: Revenue of €3.6 billion (+20% year-over-year), operating income of €168 million (turned profitable), net income of €197 million (turned profitable). Revenue by segment: Premium €3.2 billion (+20%), Ad-supported €390 million (+18%).
  • Increased Optimism for Profit Turnaround This Year: Profitability is expected to improve due to workforce reduction and subscription fee hikes, leading to a successful profit turnaround this year. CEO Daniel Ek declared this year to be the "Year of Profit Generation."
  • Expansion into New Content Areas and Features: Strengthening new content and features such as podcasts, audiobooks, music videos, and Song Psychic in addition to music, contributing to attracting premium subscribers and increasing advertising revenue.
  • Expected 2Q Earnings: Projecting 16 million MAUs increase to 631 million, 245 million premium subscribers, revenue of €3.8 billion (+20%), operating income of €250 million (turned profitable).

■ AI Analysis
Overall score of 33, ranking 2,993rd out of all listed companies in the U.S., in the top 53%

  • Future Growth: 35
  • Monopoly Power: 20
  • Financial Stability: 50
  • Profitability: 5
  • Cash Liquidity: 55



■ Company Overview

  • Digital music streaming service company.
  • Market Cap: $59.6 billion, PSR: 4x, PBR: 16.8x, ROE: -4.4%.
  • Revenues by Business Segment: Premium (87%), Ad-Supported (13%).
  • Revenues by Region: US (39%), UK (9%), Other (52%).
 

■ Stock News

  • 2024-04-07 AI Playlists Offered to Premium Users
  • 2024-01-25 Begins iPhone app in-app payments in Europe.
  • 2024-02-21 Reveals first branded music consulting service AUX.
  • 2023-11-08 Spotify offers over 200,000 audiobooks to premium listeners.
  • 2024-03-01 Adds new audiobook access.
  • 2023-03-07 Increases service charges in France.
 

■ Chart Analysis

  • Stock Price Change Over the Last 6 Months: 74.18%
 

■ Dividends

  • No recent dividend payment history.

Important Notice

All content provided by DataHero is solely for informational purposes and is not posted with the intention to sell or recommend specific stocks.

The content of DataHero is not a research report and should not be used as the sole basis for investment decisions. All investments carry risk, and past performance of financial products does not guarantee future results or returns.

When investing in financial products, one should always be aware of the possibility of financial loss and investors should carefully consider their investment objectives and risks before investing.

Stock Attractiveness

More
65 / 100 Quality

Financial Ratios

Profitability(Annualized)24.09/30
Operating Margin 5.38%
ROA 7.40%
ROE 19.00%
ROIC 48.40%
Stability24.09/30
Current Ratio 170.60%
Debt Ratio 16.92%
Receivable 20D
Growth(YoY)24.09/30
Revenue Growth 12.96%
Net Income Growth Continued loss
R&D/Revenue 13.02%
Valuation24.09/30
PER 94.61
PBR 14.32
PSR 4.39
EV/EBIDTA 54.10

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