The share price of Spotify Technology SA (SPOT, Financial) has experienced significant volatility since its initial public offering in 2018. Initially priced at $165.90 per share in April 2018, it soared to an all-time high of $334 by February 2021. However, it subsequently plummeted to an all-time low of $77.26 in November 2022, before rebounding to around $240 currently. In my opinion, Spotify is still cheap at this price and could provide decent upside for investors over the next several years. Consisten ...

In this podcast, Motley Fool host Ricky Mulvey and analyst Asit Sharma discuss:Fed Chair Jerome Powell's appearance on 60 Minutes, and the market's reaction.The commercial real estate risk for the central bank.Spotify's strategy shift in podcasting as well as its operating loss and big free cash flow number.Plus, Motley Fool host Alison Southwick and personal finance expert Robert Brokamp discuss the rise of exchange-traded products tracking Bitcoin.To catch full episodes of all The Motley Fool's free podca ...

Topline Meghan Markle struck a new podcast partnership Tuesday with Lemonada Media after Spotify’s multi-million-dollar deal with Markle and her husband, Prince Harry, ended last year.Harry and Meghan’s deal with Spotify ended in June. Robin L Marshall/FilmMagic) Key FactsUnder the new partnership, Markle’s podcast “Archetypes” will be distributed by Lemonada on all audio platforms, the company said. Markle will also host a new podcast for the small distributor that has yet to be named, Lemonada said. In ...

The S&P 500 has been on a tear since the start of 2023. Posting a 32.2% total return and hitting an all-time high earlier this year, the index is going through one of its best bull runs ever.However, audio streamer Spotify (SPOT 0.32%) has managed to crush the returns of the broad market over that period. Its shares are up 205% since the start of 2023, making it one of the best-performing stocks in the world over that time frame.With expanding margins and consistent revenue growth, Spotify has proven a lot ...

Spotify (SPOT) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The upward trend in estimate revisions for this music-streaming service operator reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings es ...

Acquisitions, Investments, and Divestitures - Acquisitions or investments may reduce operating margins and require annual goodwill impairment assessments, potentially impacting financial results[69] - Strategic partnerships may divert management focus and resources, with potential unanticipated costs or liabilities[70] - Divestitures of non-strategic business parts may incur expenses and expose the company to ongoing obligations[72] Licensing and Content Control - Dependence on third-party licenses for streaming content, with potential adverse impacts from changes in royalty rates or licensing terms[73] - Concentration of content control by major providers (e.g., Universal, Sony, Warner) poses risks, as 74% of audio streams in 2023 relied on these providers[77] - Complex license agreements impose obligations, including audits, anti-steering provisions, and restrictions on business initiatives[78] - License agreements with minimum guarantees may limit operating flexibility, especially if subscriber or advertising revenue forecasts underperform[85] - The company relies on third-party licenses for content streaming, posing risks, including limited control over content providers and compliance challenges[20] Royalty Payments and Financial Commitments - Royalty payment schemes are complex, with potential underpayment or overpayment risks impacting financial results[82] - Estimated future financial commitments under license agreements total €4.7 billion as of December 31, 2023[84] Metadata and Ownership Challenges - Challenges in obtaining accurate metadata for musical compositions may impact content acquisition costs and copyright compliance[75] - Difficulties in obtaining accurate ownership information for musical compositions may impact the company's ability to control content acquisition costs and lead to potential copyright infringement claims[86] - The company relies on third parties to determine ownership information for musical compositions, which may result in challenges in identifying appropriate rights holders and complying with license agreements[86][87] - The company's ability to identify compositions and ownership information is crucial for obtaining licenses and complying with existing agreements[20] Legal and Compliance Risks - Under the Music Modernization Act (MMA), the company has a limitation of liability for royalties if it cannot locate the owner of a composition, but failure to follow procedural steps could expose the company to increased financial liability[88] - The company faces risks of significant liability for copyright infringement, breach of contract, or other claims related to licensing musical compositions[88][89] - Third parties may assert intellectual property infringement claims, which could harm the company's business, operating results, and financial condition[89] - The company is dependent on licensing intellectual property rights for audio and visual content, and compliance with laws and regulations is critical to avoid infringement claims[89] - Litigation related to intellectual property rights could require the company to pay significant damages, redesign solutions, or enter into unfavorable royalty agreements[90] - The company operates in a complex environment with evolving risks, including potential disputes or liabilities associated with content on its service[20]

Key TakeawaysSpotify Technology SA reported a narrower fourth-quarter loss after adding audiobooks and while covering the cost of recent staff cuts made to reduce costs.Spotify said its Monthly Active Users grew by 23% year-on-year to 602 million, which was 1 million greater than management’s guidance.Spotify's management sees a strong 2024 after absorbing the costs of staff cuts.The company's diversification into audiobooks has helped to boost new subscribers.Spotify Technology's (SPOT) operating loss narr ...

Shares of Spotify (SPOT 3.94%) jumped as much as 11.4% in early trading on Tuesday after it reported fourth-quarter 2023 financial results. Not only did user and revenue growth beat estimates, the company's efficiency focus has led to strong free cash flow from the business.Travis Hoium digs through everything you need to know in this video.*Stock prices used were end-of-day prices of Feb. 6, 2024. The video was published on Feb. 6, 2024. ...

Spotify (SPOT 3.39%) reported better than expected fourth-quarter financial results before the market opened on Tuesday, and shares promptly jumped by 11.4%. But as the day wore on, the enthusiasm faded, and as of 1:30 p.m. ET, the stock was up by just 3.2%.Beating expectationsSpotify reported a 10 million subscriber increase in premium members in the quarter, beating the 8.9 million that analysts expected. Total monthly active users hit 602 million, topping estimates by 1 million. Revenue was up 16% year o ...

Subscribers to our Schaeffer's Weekend Trader service scored a 146% profit with our recommended Spotify Technology SA (NYSE:SPOT) April 200 call in just over three weeks. Below, we'll explain why we recommended the bullish position in the first place, and how the trade played out so quickly. At the time of our recommendation on Sunday, Jan. 14, SPOT had just moved above the round $200 level -- a layer it failed to break above in December -- and found support at its 20-day moving aver. What's more, the 200-w ...