2024-07-18 09:00:00 ET
Summary
- Spotify continues to report robust performance metrics, thanks to the sustained price hikes, sticky consumer base, and drastic cost cuts in 2023.
- Even so, we are starting to see decelerating growth in its MAUs/Premium subscribers in the EU and North America, potentially triggering growth headwinds.
- YouTube has also been reporting great gains in podcast market share, with it remaining to be seen if SPOT may be impacted with the latter's offerings currently being more expensive.
- SPOT is also overly expensive at current levels compared to its Big Tech peers, despite the promising consensus forward estimates through FY2026.
- With SPOT expected to report its FQ2'24 earnings call on July 23, 2024, we shall be highlighting a few metrics to look out, with those underscoring its near-term prospects.
SPOT's Growth Story Remains Compelling, Albeit Overly Expensive Here
SPOT's Value Proposition In Audio Streaming
Spotify Technology S.A. ( SPOT ) is a European-based company specializing in audio streaming subscription services across music, podcasts, and audiobooks in both ad-supported and premium ad-free tiers.
The platform has been highly successful in its business mission indeed - in which to "unlock the potential of human creativity - by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by it."...
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Spotify's Price Hikes Are Bullish, Though It Remains Overpriced