2.94%
23.68%
46.15%
73.72%
162.41%
207.92%
317.15%
AI Spotlight on 639
Company Description
Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide.It operates through Premium and Ad-Supported segments.The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.
The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers on their computers, tablets, and compatible mobile devices.The company also offers sales, marketing, contract research and development, and customer support services.As of December 31, 2021, its platform included 406 million monthly active users and 180 million premium subscribers in 184 countries and territories.
The company was incorporated in 2006 and is based in Luxembourg, Luxembourg.
Market Data
| Last Price | 532.7 |
| Change Percentage | 2.94% |
| Open | 520.4 |
| Previous Close | 517.5 |
| Market Cap ( Millions) | 104280 |
| Volume | 2449 |
| Year High | 533.4 |
| Year Low | 199.2 |
| M A 50 | 458.08 |
| M A 200 | 344.29 |
Financial Ratios
| FCF Yield | 1.75% |
| Dividend Yield | 0.00% |
| ROE | 19.04% |
| Debt / Equity | 38.55% |
| Net Debt / EBIDTA | -306.77% |
| Price To Book | 23.65 |
| Price Earnings Ratio | 156.32 |
| Price To FCF | 57.12 |
| Price To sales | 6.87 |
| EV / EBITDA | 106.53 |
News
- Jan -30 - Pre-Q4 Earnings: Should Spotify Stock be in Your Portfolio?
- Jan -29 - Where Will Spotify Technology Be in 1 Year?
- Jan -29 - Coherent (COHR) Earnings Expected to Grow: Should You Buy?
- Jan -29 - Spotify Defends Artist Payouts After Paying $10B to Music Industry in 2024
- Jan -29 - Jefferies raises target on Spotify stock by $75 on growth bets
- Jan -29 - Best Stock to Buy Right Now: Sirius XM vs. Spotify
- Jan -27 - Spotify (SPOT) Rises As Market Takes a Dip: Key Facts
- Jan -27 - DeepSeek sends tech stocks tumbling, Fed rates: Catalysts
- Jan -27 - Spotify's Universal deal is a key step in streaming innovation
- Jan -27 - Spotify (SPOT) Achieved Exceptional Growth Over the Past 6 Years
- Jan -26 - Universal Music Group and Spotify strike new agreement
- Jan -24 - 3 US Growth Companies With 17% Insider Ownership
- Jan -23 - Daniel Ekβs body scanning startup hits Β£1.4 billion valuation with 100,000 people lining up to pay Β£299 for a health check
- Jan -22 - Can the Sincera Buyout Change TTD's Fate or is it Still a Risky Bet?
- Jan -22 - Dow Jones Retail Giant Amazon Breaks Out; Broadcom Stock Nears Buy Point
- Jan -22 - Spotify, IBD Stock Of The Day, Expands Into Self-Help Courses
- Jan -22 - Spotify's educational audio courses could be coming to US
- Jan -21 - Spotify (SPOT) Rises Yet Lags Behind Market: Some Facts Worth Knowing
- Jan -21 - Dow Jones Retail Giant Amazon, Broadcom Stock Near Buy Points
- Jan -21 - Where Will Spotify Technology Stock Be in 1 Year?
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Premium
Expected Growth : 21.5 %
What the company do ?
Spotify Premium is a paid subscription offering ad-free music streaming, offline playback, and improved audio quality.
Why we expect these perspectives ?
Growing demand for ad-free music streaming, increasing adoption of offline playback, and rising preference for high-quality audio are driving Spotify Premium's growth, fueled by expanding smartphone penetration and improving internet infrastructure globally.
Segment nΒ°2 -> Ad-Supported
Expected Growth : 20.4 %
What the company do ?
Ad-Supported is a free Spotify tier generating revenue through audio and display ads, offering limited features and skips.
Why we expect these perspectives ?
Growing demand for free music streaming, increasing adoption of mobile devices, and rising digital advertising spend are driving the Ad-Supported segment's growth.
Spotify Technology S.A. Products
| Product Range | What is it ? |
|---|---|
| Spotify Free | A free music streaming service that allows users to listen to music with occasional ads |
| Spotify Premium | A paid music streaming service that offers ad-free listening, offline playback, and improved audio quality |
| Spotify Duo | A paid music streaming service designed for two users, offering ad-free listening and offline playback |
| Spotify Family | A paid music streaming service designed for families, offering ad-free listening and offline playback for up to six users |
| Spotify for Artists | A platform that provides artists with tools to manage their music, track their performance, and connect with fans |
| Spotify for Podcasters | A platform that provides podcasters with tools to host, distribute, and monetize their podcasts |
| Spotify Ad Studio | A self-serve ad platform that allows advertisers to create and manage audio ads |
| Spotify Analytics | A platform that provides insights and analytics for artists, labels, and industry professionals |
Spotify Technology S.A.'s Porter Forces
Threat Of Substitutes
Spotify has a low threat of substitutes due to its unique features, such as Discover Weekly and Release Radar, which provide users with personalized playlists and music recommendations. Additionally, Spotify's vast music library and user-friendly interface make it difficult for substitutes to compete.
Bargaining Power Of Customers
Spotify's customers have some bargaining power due to the availability of alternative music streaming services, such as Apple Music and Tidal. However, Spotify's strong brand recognition and user loyalty mitigate this power to some extent.
Bargaining Power Of Suppliers
Spotify's suppliers, such as music labels and artists, have limited bargaining power due to the company's dominant position in the music streaming market. Spotify's ability to negotiate favorable licensing agreements with suppliers further reduces their bargaining power.
Threat Of New Entrants
The threat of new entrants in the music streaming market is moderate, as it requires significant investment in technology, content, and marketing. However, new entrants could potentially disrupt the market with innovative features or business models.
Intensity Of Rivalry
The intensity of rivalry in the music streaming market is high, with several established players, such as Apple Music and Amazon Music, competing for market share. The market is highly competitive, with companies constantly innovating and improving their services to attract and retain customers.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 32.50% |
| Debt Cost | 3.79% |
| Equity Weight | 67.50% |
| Equity Cost | 12.06% |
| WACC | 9.37% |
| Leverage | 48.16% |
Spotify Technology S.A. : Quality Control
Spotify Technology S.A. passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| NXPI | NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; β¦ |
| SAP.DE | SAP SE, together with its subsidiaries, operates as an enterprise application software company worldwide. The company operates through three segments: Applications, Technology & Support; Qualtrics; and Services. It offers SAP β¦ |
| TEL | TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaΒPacific, and the Americas. The company operates through three β¦ |
| NOKIA.HE | Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. It offers products β¦ |
| ACN | Accenture plc, a professional services company, provides strategy and consulting, interactive, and technology and operations services worldwide. The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, β¦ |
Peers Metrics
DCF BETA
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Scoring Insights
Peers Group Analysis
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