SPOT Stock Overview
Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide.
No risks detected for SPOT from our risk checks.
Spotify Technology Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$104.40|
|52 Week High||US$305.60|
|52 Week Low||US$89.03|
|1 Month Change||-22.34%|
|3 Month Change||-34.43%|
|1 Year Change||-52.61%|
|3 Year Change||-17.85%|
|5 Year Change||n/a|
|Change since IPO||-29.94%|
Recent News & Updates
Spotify: Top Subscription Stock With A Sell Recommendation
High inflation, a slowing economy, competition, and investor fear are affecting subscriber growth numbers and eating into the profits of popular tech and subscription stocks. Pandemic darlings are becoming duds and their stocks are falling to major lows. With market volatility, many companies do not possess the fundamentals to endure this climate. Using the Seeking Alpha Quant System, you can see why the highlighted stock is a strong sell.
Spotify: Not A Sell, But Still Far From A Buy
Spotify is about to lose the Obamas on its exclusive podcast partnership. We discuss why Spotify doesn't have a defensible moat, coupled with weak profitability. Competition is also brewing. While we don't think SPOT stock is a sell now, we rate it as a Hold.
Spotify: Neither Disruptive Nor Innovative; Ripe To Be Disrupted; Sell Now
While Spotify built up an impressive music business, we recommend investors sell their shares as growth is beginning to slow amidst rising interest rates and turmoil in Western Europe. We believe Spotify's business will be under severe strain due to slowing subscriber growth, increasing churn, limited differentiation, and increasing competition. Competition from Apple, Amazon, and Google will continue to intensify as these large vendors will bundle their products and services, making it hard for Spotify to compete. The era of easy-subscriber growth is over, and the company would need to invest heavily to keep the growth going. We expect Spotify to produce its content to remain relevant. Spotify stock is not cheap and is priced for perfection. We can foresee the stock below $100 this year. Therefore, we recommend that investors sell the shares.
|SPOT||US Entertainment||US Market|
Return vs Industry: SPOT underperformed the US Entertainment industry which returned -45% over the past year.
Return vs Market: SPOT underperformed the US Market which returned -8.1% over the past year.
|SPOT Average Weekly Movement||10.5%|
|Entertainment Industry Average Movement||12.7%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.9%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: SPOT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: SPOT's weekly volatility (10%) has been stable over the past year.
About the Company
Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. It operates through Premium and Ad-Supported segments. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.
Spotify Technology Fundamentals Summary
|SPOT fundamental statistics|
Is SPOT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SPOT income statement (TTM)|
|Cost of Revenue||€7.47b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||0.38|
|Net Profit Margin||0.73%|
How did SPOT perform over the long term?See historical performance and comparison
Is Spotify Technology undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SPOT ($104.4) is trading below our estimate of fair value ($336.67)
Significantly Below Fair Value: SPOT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SPOT is poor value based on its PE Ratio (259.3x) compared to the US Entertainment industry average (24.8x).
PE vs Market: SPOT is poor value based on its PE Ratio (259.3x) compared to the US market (16x).
Price to Earnings Growth Ratio
PEG Ratio: SPOT is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: SPOT is overvalued based on its PB Ratio (8.9x) compared to the US Entertainment industry average (2x).
How is Spotify Technology forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SPOT's forecast earnings growth (65.3% per year) is above the savings rate (1.9%).
Earnings vs Market: SPOT's earnings (65.3% per year) are forecast to grow faster than the US market (12.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SPOT's revenue (13% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: SPOT's revenue (13% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SPOT's Return on Equity is forecast to be low in 3 years time (8.3%).
How has Spotify Technology performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SPOT has high quality earnings.
Growing Profit Margin: SPOT became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: SPOT has become profitable over the past 5 years, growing earnings by 44.6% per year.
Accelerating Growth: SPOT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SPOT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (23.3%).
Return on Equity
High ROE: SPOT's Return on Equity (3.4%) is considered low.
How is Spotify Technology's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: SPOT's short term assets (€4.4B) exceed its short term liabilities (€3.1B).
Long Term Liabilities: SPOT's short term assets (€4.4B) exceed its long term liabilities (€1.8B).
Debt to Equity History and Analysis
Debt Level: SPOT has more cash than its total debt.
Reducing Debt: SPOT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: SPOT's debt is well covered by operating cash flow (29.1%).
Interest Coverage: SPOT's interest payments on its debt are not well covered by EBIT (1.9x coverage).
What is Spotify Technology current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SPOT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SPOT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SPOT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SPOT's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as SPOT has not reported any payouts.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Daniel Ek (38 yo)
Mr. Daniel G. Ek founded Spotify Limited in 2006 and serves as its Chief Executive Officer. Mr. Ek is Founder, Chief Executive Officer and Chairman of Spotify Technology S.A. He has been a Director of Spot...
CEO Compensation Analysis
Compensation vs Market: Daniel's total compensation ($USD96.78K) is below average for companies of similar size in the US market ($USD13.27M).
Compensation vs Earnings: Daniel's compensation has been consistent with company performance over the past year.
Experienced Management: SPOT's management team is considered experienced (3.6 years average tenure).
Experienced Board: SPOT's board of directors are considered experienced (4.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Spotify Technology S.A.'s employee growth, exchange listings and data sources
- Name: Spotify Technology S.A.
- Ticker: SPOT
- Exchange: NYSE
- Founded: 2006
- Industry: Movies and Entertainment
- Sector: Media
- Implied Market Cap: US$20.264b
- Shares outstanding: 192.88m
- Website: https://www.spotify.com
Number of Employees
- Spotify Technology S.A.
- 42-44, avenue de la Gare
- Luxembourg City
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/18 00:00|
|End of Day Share Price||2022/05/18 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.