Name of opportunity: 👀
Spotify Technology SA
The results are in: 📨
Spotify released its second quarter results today, and shared some exciting growth.
Since this time last year, subscribers at Spotify have increased by 12% to 246 million. Year-on-year, the number of monthly active users has grown by 14% to 626 million.
Total revenue has also seen a significant increase, growing 20% year-on-year to reach approximately US$4.1 billion.
Number of premium subscribers, gross margin and operating income all exceeded Spotify’s own guidance.
How hot is this investment opportunity? 🔥🔥🔥
Analysts predict the price of Spotify will increase from $295.45 to $351.06 in the next 12 months. If you invested $1000, you might profit $188.23. Analysts have said that Spotify has a loyal customer base and is continuing to benefit from a series of price hikes, as well as cuts that made the company leaner. These positive Q2 results may lead more investors to get involved, while Spotify’s position is strong. It’s currently considered a ‘Buy’.
In Spotify’s Q2 earnings report, the company also shared some examples of recent innovations that could lead to further growth. In 2020, Spotify introduced video podcasts in a roll out of a small number of shows - more and more have been added since then, and 170 million users have now watched at least one. New products and services aimed at the businesses who advertise on Spotify have also been launched and planned, which will enhance this revenue stream for the company. ‘Quick Audio’ is a generative AI tool that advertisers will be able to use to create scripts and voiceovers quickly and easily.
All ears: 🎧
We have covered Spotify on Hot Stocks before, most recently when rumours swirled around the new ‘Supremium’ subscription plan which has been in the works for some time. This very well known streaming company was launched in 2008 and has since become the world’s most popular streaming platform in terms of user numbers.
Which neme?: 🔍
‘Top Stocks On X/Twitter’
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