SPOT

Spotify Technology S.A.

TMT


Presented:12/15/2021
Price:$225.40
Cap:$42.32B
Current Price:$372.60
Cap:$72.88B

Presented

Date12/15/2021
Price$225.40
Market Cap$42.32B
Ent Value$42.20B
P/E RatioN/A
Book Value$12.81
Div Yield0%
Shares O/S187.74M
Ave Daily Vol1,291,312
Short Int4.19%

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 operates through the following segments: Premium and Ad-Supported. The Premium segment provides subscribers with unlimited online and offline high-quality streaming access of music and podcasts on computers, tablets, and mobile devices, users can connect through speakers, receivers, televisions, cars, game consoles, and smart watches. It also offers a music listening experience without commercial breaks. The Ad-Supported segment provides users with limited on-demand online access of music and unlimited online access of podcasts on their computers, tablets, and compatible mobile devices. It also serves both premium subscriber acquisition channel and a robust option for users who are unable or unwilling to pay a monthly subscription fee but still want to enjoy access to a wide variety of high-quality audio content. The company was founded by Daniel Ek and Martin Lorentzon in April, 2006 and is headquartered in Luxembourg.

Publicly traded companies mentioned herein: Spotify Technology SA (SPOT)

Highlights

The presenter is long shares of Spotify Technology SA (SPOT), the $40B market cap streaming giant trading near $225 per share. The company is turning a corner on MAU acquisition and increasing gross profit margins via podcast growth. The company’s new technologies and features such as Discovery are proving largely successful in driving listeners towards new music, which gives SPOT slight leverage in retaining its share of premium revenues. Putting this together, he sees limited downside to $200 per share and potential upside of $350 based on 15x his 2023 gross profit.

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Idea Discussion

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