SPOT
📈 Spotify reported stronger-than-expected subscriber growth in Q1, reaching 268 million, surpassing both company projections and analyst estimates of 265 million.
🎧 This growth demonstrates the success of Spotify’s strategy to expand beyond music into audiobooks and podcasts, attracting more users even with price increases.
💰 Despite positive operational results and meeting revenue expectations (€4.2B), the stock fell, potentially due to its high valuation (around 50x forward earnings) relative to its 12% subscriber growth rate.
@bernardodegarcia:
“Let’s see, by the way, uh, Spotify falling despite having a beat on earnings, and PayPal also falling 3%, trading at 13 times future earnings, maybe a bit much right now. Spotify reported more subscribers than expected by analysts in the first quarter, demonstrating that the streaming service’s strategy of expanding beyond music to audiobooks and podcasts is working and attracting more followers, even with price increases. The company reported a 12% increase in subscribers, reaching 268 million, surpassing Spotify’s projections and analyst estimates pointing to 265 million. Revenue of €4.2 billion, almost $4.8 billion, matched Spotify’s forecasts and analyst estimates as well. However, as we are seeing, this is not enough for a company or a stock trading at 50 times future earnings. A 12% growth in subscribers, I don’t know, Jack. Apple grows 10% and trades at 30. I don’t know.”
Watch the exact part of the video where @bernardodegarcia talks about Spotify here:
Watch the video on YouTube
Read more articles analyzing Spotify (SPOT) at the provided link. SPOT stock.
