![]() SPOT's stock was listed on the New York Stock Exchange via a direct listing process on Apwith a reference price of $132. SPOT is geographically diversified with "a presence in 178 markets" based on the company's media releases and the US only represented 39% of its Q3 2021 top line as indicated in its 6-K filing. The Ad-Supported segment contributed the remaining 13% of sales and 5% of gross profit for Spotify Technology in the recent quarter. The Premium (subscription) segment accounted for 87% and 95% of SPOT's revenue and gross profit, respectively in Q3 2021 according to its recent 6-K filing. ![]() In its media releases, SPOT also discloses that it has "381 million Monthly Active Users and 172 million Premium Subscribers", who have access to "70 million tracks including 3.2 million podcast titles." ![]() Spotify Technology calls itself "the most popular global audio streaming subscription service" in the company's Q3 2021 6-K filing. As such, I assign a Bullish or Buy rating to SPOT. In addition, Spotify Technology's current Enterprise Value-to-Revenue multiple is relatively reasonable, and a positive re-rating of its valuations is highly probable with the success of the podcast platform. Another key factor is that the podcasting business is expected to have higher margins than the music business in a steady state, given that the former has no need to share substantial revenue with the record labels unlike the music business. One key factor is the positive operating leverage for the podcasts business as it scales up. SPOT's overall profitability will rise in the medium to long term, as the company's market share and revenue for the podcasting business expand in the future. ( NYSE: SPOT) as a Buy, as they surpass Apple ( AAPL) Podcast to become the No. Stockcam/iStock Unreleased via Getty Images Elevator Pitch
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