TCEHY - Spotify's Unexpected Profit Confirms It Is Truly Becoming An All-Purpose Audio Platform | Benzinga
Known as the Netflix (NASDAQ: NFLX) of music, Spotify Technology S.A. (NYSE: SPOT) reported a surprise quarterly profit, its first in 18 months. The Swedish-based music streaming king is also going against Amazon.com Inc (NASDAQ: AMZN) as it expanded its business into audio books and podcasts. Upon the strong earnings report, Spotify shares closed 10% up on Tuesday with its stock having more than doubled year to date, giving the company a market value of $33.22 billion.
Challenging Amazon
After branching out into podcasts in 2015, Spotify made a major push into audiobooks to further diversify its revenue streams. It announced earlier this month it will be providing its subscribers access to more than 150,000 audio books, challenging Amazon and its Audible. Its subscribers in the U.K and Australia already got this perk, while its U.S. launch is scheduled for winter.
According to the latest earnings figures, Spotify is approaching profitability on the podcasting front. Spotify CFO Paul Vogel reiterated that the podcasting segment is expected to reach breakeven by next ...