2024-03-20 10:23:00 ET
The "Magnificient Seven" stocks have dominated the market since the start of 2023. Leading the broad indices to new highs, these seven companies -- all of which have had a market capitalization of at least $1 trillion at some point -- have become the backbone of the modern stock market. Businesses like Alphabet and Apple have demolished most of their competitors, such as Yahoo and Blackberry .
Investors might think it is impossible to compete with the Magnificent Seven tech stocks at this point. But that is not the case in every sector. Enter Spotify (NYSE: SPOT) . The leading music and audio streaming service has blazed its own path worldwide despite major competition from the likes of Apple, YouTube, and others. With the stock up 222% since the start of 2023, is now the perfect time to hop on the Spotify growth train?
Spotify is well-known for its audio streaming application. It allows users to play any music from around the world -- along with podcasts and audiobooks -- with only an internet connection. To make money, Spotify charges users a monthly subscription to access music without advertisements, along with a few other features. This is where the majority of its $14.4 billion in annual revenue comes from today. Since going public in 2018, Spotify's revenue is up 209% in U.S. dollars. Since 2015, its premium subscribers have grown from 28 million to 236 million.
For further details see:
This Growth Stock Is Beating the "Magnificent Seven": Should You Buy?