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



[Recommended Stock Earnings Review]
2Q subscribers increased by 12%...stock price soared by 11.96%

■ Trading Strategy (2024-07-24)

  • Recommendation Rating: Hold
  • Recommendation Price: $296
  • Current Price: $330.79
  • Target Price: $385
  • Current Return: +11.75%

■ Key Q2 Earnings Highlights

  • Continued Growth in Users and Subscribers: Ending Q2, Monthly Active Users (MAUs) reached 626 million (+14% year-over-year), with premium subscribers at 246 million (+12%). Premium ARPU increased by 10% compared to last year.

  • Profitability for Three Consecutive Quarters: Revenue was €3.8 billion (+20% year-over-year), with an operating income of €270 million (return to profitability) and net income also at €270 million. Revenue breakdown: €3.35 billion from premium subscriptions (+21%), €460 million from ad-supported services (+13%).

  • Effect of Subscription Price Increase: Introduced new subscription plans including audiobooks and implemented price increases in major markets including the US. Lower churn rates observed post-price increase suggest potential for further price adjustments in other markets.

  • Q3 Performance Forecast: Expecting MAUs to increase by 13 million to 639 million, with premium subscribers reaching 251 million. Revenue projected at €4 billion, and operating income at €400 million.

  • Continued growth expected through advertising growth and introduction of additional premium plans : Growth in programmatic advertising and potential introduction of a super-premium tier for music enthusiasts priced between $17 to $18 mentioned as likely to attract even more dedicated fans.


Recent Stock Price Trend


■ Previous Trading Strategy
☞ Continued Subscriber Growth... Increased Optimism for Profit Turnaround This Year

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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