2024-02-19 02:21:51 ET
Summary
- We discuss the investment thesis for Spotify, providing an overview of the company, including its strengths and weaknesses.
- The Company has increasing negative return on invested capital since its IPO.
- We feel the losses need to be lessened if not halted in order for SPOT to measure up to its current lofty valuation.
Investment Thesis
Strengths and Weaknesses
Founded in 2006 in Luxembourg and maintaining a principal operating office in Stockholm, Sweden, Spotify (SPOT) is a digital platform for audio streaming services including music, radio, podcasts, and audiobooks with true global reach. As it originated from Luxembourg, the company not only dominates the European market but also achieves similar status in the US and Latin America. In total, it currently provides services in 184 countries and territories worldwide. It has an uncomplicated business model: growing subscription and advertising revenue while maintaining a large free user base....
Read the full article on Seeking Alpha
For further details see:
Spotify: Growing In Size Needs To Tune Up To Growing In Value