Summary The impact of a volatile macro environment on Spotify should be fairly limited due to their sticky subscription revenue. This now appears to be priced into the stock though. It is too early to say how beneficial Spotify’s product expansion efforts will be, but given Spotify’s valuation, they represent an upside opportunity rather than a downside risk. Investors remain skeptical of Spotify’s business, and hence, the stock continues to have a modest valuation. Avid Photographer. Travel the world to capture moments and beautiful photos. Sony Alpha User Over the past few years Spotify (NYSE: SPOT ) has established itself as the dominant audio streaming platform globally. Despite this, investors generally remain skeptical about the company’s ability to generate decent profit margins. This is likely somewhat shortsighted given Spotify’s recent strategic moves. At the end of 2022, Spotify had over 100 million tracks , 5 million podcasts and 300,000 audio books on their platform. Continued user growth and product expansion should improve Spotify’s margins and in time bargaining power. While the stock is not as undervalued as it was several months ago, even a modest level of profitability should still see Spotify outperform the market over a longer time […]
Spotify: Product Expansion Represents An Opportunity
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