AAPL - Spotify's Price Hikes Make It Expensive For Everyone

2024-07-08 11:11:54 ET

Summary

• Spotify's strong performance in 2024 includes a significant increase in premium subscribers and progress towards GAAP profitability.
• Despite impressive user growth, caution is advised due to recent price hikes in an uncertain inflationary environment and potential consumer pushback.
• Valuation suggests minimal upside for Spotify stock, with a forward valuation premium of ~63x and risks associated with the second round of price hikes.

Investment Thesis

Spotify ( SPOT ) has few reasons to complain in 2024.

The Stockholm, Sweden-based company finally won their fight against Apple ( AAPL ) earlier this year, with the EU Commission fining Apple $2 billion for its anti-competitive practices against apps like Spotify....

For further details see: