SPOT

Spotify Technology S.A.

TMT


Presented:12/17/2019
Price:$151.53
Cap:$27.13B
Current Price:$372.60
Cap:$72.88B

Presented

Date12/17/2019
Price$151.53
Market Cap$27.13B
Ent Value$20.51B
P/E Ratio52.09x
Book Value$11.81
Div Yield0%
Shares O/S179.07M
Ave Daily Vol1,571,164
Short Int4.26%

Current

Price$372.60
Market Cap$72.88B
Spotify Technology SA is a digital music service offering music fans instant access to a world of music. The company enables on-demand streaming of audio content and aim to combat music piracy by offering a user experience, while monetizing licensed content with an ad-supported, free-to-the-user model and a premium, paid model. It provides a marketplace for additional products such as live events and music downloads. The company was founded by Daniel Ek and Martin Lorentzon in 2006 and is headquartered in Luxembourg.

Publicly traded companies mentioned herein: Apple Inc (AAPL), Spotify Technology SA (SPOT)

Highlights

The presenter is long shares of Spotify Technology SA (SPOT), noting that the market is underestimating the company’s importance and leverage in the music and streaming ecosystems. Shares are currently trading at ~$150 (~3x consensus 2020 revenue, ~10x consensus 2020 gross profit), but he believes SPOT has higher EBIT margins than the market assumes and significant topline runway. While the presenter has a very bullish outlook over a multi-year period, he expects timely catalysts to change the market’s perception and expectations, resulting in ~45% upside to ~$215 per share in the near-term.

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Idea Discussion

Commentor 1 - 2 weeks ago

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