2024-05-07 15:52:32 ET
Summary
- Spotify's recent earnings report shows record operating profits and a shift towards profitability.
- The company is considering introducing a flexible tiered pricing system to monetize its large user base.
- Spotify's leadership team has a strong combination of vision, execution, and financial resources.
- Initiating coverage with a cautious buy based on Spotify's potential to achieve its first-ever quarterly net income profit. However, near-term volatility is possible due to approaching high resistance levels.
Investment Thesis
Spotify ( SPOT ) stock journey began April 2018 with a direct listing. This approach unlike a traditional IPO, allowed existing shareholders to trade their shares publicly without raising new capital. This suggests a strong financial foundation for Spotify at the time, with ample cash and minimal debt....
Read the full article on Seeking Alpha
For further details see:
Spotify Turning The Corner On Profitability, A Cautious Buy