Is Spotify Technology Stock a Good Investment?
Spotify Technology Investment Advice | SPOT |
- Examine Spotify Technology's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Spotify Technology's leadership team and their track record. Good management can help Spotify Technology navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Movies & Entertainment space and any emerging trends that could impact Spotify Technology's business and its evolving consumer preferences.
- Compare Spotify Technology's performance and market position to its competitors. Analyze how Spotify Technology is positioned in terms of product offerings, innovation, and market share.
- Check if Spotify Technology pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Spotify Technology's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Spotify Technology SA stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Spotify Technology SA is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Spotify Technology Stock
Researching Spotify Technology's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 26.0% of the company outstanding shares are owned by corporate insiders. The company had not issued any dividends in recent years.
To determine if Spotify Technology is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Spotify Technology's research are outlined below:
| The company reported the previous year's revenue of 13.25 B. Net Loss for the year was (532 M) with profit before overhead, payroll, taxes, and interest of 4.34 B. | |
| Spotify Technology has a poor financial position based on the latest SEC disclosures | |
| About 66.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Spotifys Secret To Turning Fans Into Superfans - Barchart |
Spotify Technology Quarterly Gross Profit |
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Spotify Technology uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Spotify Technology SA. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Spotify Technology's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 23rd of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Spotify Technology's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Spotify Technology's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-07-31 | 2019-06-30 | -0.32 | -0.42 | -0.1 | 31 | ||
2021-02-03 | 2020-12-31 | -0.55 | -0.66 | -0.11 | 20 | ||
2023-01-31 | 2022-12-31 | -1.27 | -1.4 | -0.13 | 10 | ||
2021-04-28 | 2021-03-31 | -0.39 | -0.25 | 0.14 | 35 | ||
2022-10-25 | 2022-09-30 | -0.84 | -0.99 | -0.15 | 17 | ||
2021-07-28 | 2021-06-30 | -0.37 | -0.19 | 0.18 | 48 | ||
2022-02-02 | 2021-12-31 | -0.42 | -0.21 | 0.21 | 50 | ||
2024-11-13 | 2024-09-30 | 1.6639 | 1.45 | -0.2139 | 12 |
Spotify Technology Target Price Consensus
Spotify target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Spotify Technology's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 37 | Strong Buy |
Most Spotify analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Spotify stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Spotify Technology, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationSpotify Technology Target Price Projection
Spotify Technology's current and average target prices are 624.06 and 476.97, respectively. The current price of Spotify Technology is the price at which Spotify Technology SA is currently trading. On the other hand, Spotify Technology's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Spotify Technology Market Quote on 5th of February 2025
Target Price
Analyst Consensus On Spotify Technology Target Price
Spotify Technology Analyst Ratings
Spotify Technology's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Spotify Technology stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Spotify Technology's financials, market performance, and future outlook by experienced professionals. Spotify Technology's historical ratings below, therefore, can serve as a valuable tool for investors.Know Spotify Technology's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Spotify Technology is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Spotify Technology SA backward and forwards among themselves. Spotify Technology's institutional investor refers to the entity that pools money to purchase Spotify Technology's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Arrowstreet Capital Limited Partnership | 2024-09-30 | 2.2 M | State Street Corp | 2024-09-30 | 2 M | Winslow Capital Management, Llc | 2024-09-30 | 1.9 M | Schroder Investment Management Group | 2024-09-30 | 1.9 M | Qube Research & Technologies | 2024-09-30 | 1.9 M | Fmr Inc | 2024-09-30 | 1.6 M | Lone Pine Capital Llc | 2024-09-30 | 1.6 M | Artisan Partners Limited Partnership | 2024-09-30 | 1.5 M | Amf Pensionsforsakring Ab | 2024-09-30 | 1.5 M | Baillie Gifford & Co Limited. | 2024-12-31 | 13.2 M | Jpmorgan Chase & Co | 2024-09-30 | 8.8 M |
Spotify Technology's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 110.96 B.Market Cap |
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Spotify Technology's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.07) | (0.07) | |
| Return On Capital Employed | (0.09) | (0.10) | |
| Return On Assets | (0.06) | (0.06) | |
| Return On Equity | (0.24) | (0.23) |
Determining Spotify Technology's profitability involves analyzing its financial statements and using various financial metrics to determine if Spotify Technology is a good buy. For example, gross profit margin measures Spotify Technology's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Spotify Technology's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Spotify Technology's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Spotify Technology SA. Check Spotify Technology's Beneish M Score to see the likelihood of Spotify Technology's management manipulating its earnings.
Evaluate Spotify Technology's management efficiency
Spotify Technology has return on total asset (ROA) of 0.0779 % which means that it generated a profit of $0.0779 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.207 %, meaning that it created $0.207 on every $100 dollars invested by stockholders. Spotify Technology's management efficiency ratios could be used to measure how well Spotify Technology manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.07 in 2025. Return On Capital Employed is likely to drop to -0.1 in 2025. At this time, Spotify Technology's Non Current Liabilities Total is comparatively stable compared to the past year. Change To Liabilities is likely to gain to about 296.8 M in 2025, whereas Total Current Liabilities is likely to drop slightly above 2.7 B in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 11.66 | 7.21 | |
| Tangible Book Value Per Share | 6.08 | 4.70 | |
| Enterprise Value Over EBITDA | (95.70) | (100.48) | |
| Price Book Value Ratio | 15.09 | 11.66 | |
| Enterprise Value Multiple | (95.70) | (100.48) | |
| Price Fair Value | 15.09 | 11.66 | |
| Enterprise Value | 28.5 B | 21.3 B |
The management team at Spotify Technology has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Beta 1.561 |
Basic technical analysis of Spotify Stock
As of the 5th of February, Spotify Technology has the Coefficient Of Variation of 397.14, semi deviation of 1.72, and Risk Adjusted Performance of 0.2176. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Spotify Technology, as well as the relationship between them.Spotify Technology's Outstanding Corporate Bonds
Spotify Technology issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Spotify Technology uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Spotify bonds can be classified according to their maturity, which is the date when Spotify Technology SA has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View |
Understand Spotify Technology's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Spotify Technology's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.2176 | |||
| Market Risk Adjusted Performance | 1.09 | |||
| Mean Deviation | 1.57 | |||
| Semi Deviation | 1.72 | |||
| Downside Deviation | 2.16 | |||
| Coefficient Of Variation | 397.14 | |||
| Standard Deviation | 2.33 | |||
| Variance | 5.44 | |||
| Information Ratio | 0.2181 | |||
| Jensen Alpha | 0.5406 | |||
| Total Risk Alpha | 0.3864 | |||
| Sortino Ratio | 0.2354 | |||
| Treynor Ratio | 1.08 | |||
| Maximum Drawdown | 16.86 | |||
| Value At Risk | (3.23) | |||
| Potential Upside | 3.27 | |||
| Downside Variance | 4.67 | |||
| Semi Variance | 2.96 | |||
| Expected Short fall | (1.78) | |||
| Skewness | 1.14 | |||
| Kurtosis | 6.91 |
| Risk Adjusted Performance | 0.2176 | |||
| Market Risk Adjusted Performance | 1.09 | |||
| Mean Deviation | 1.57 | |||
| Semi Deviation | 1.72 | |||
| Downside Deviation | 2.16 | |||
| Coefficient Of Variation | 397.14 | |||
| Standard Deviation | 2.33 | |||
| Variance | 5.44 | |||
| Information Ratio | 0.2181 | |||
| Jensen Alpha | 0.5406 | |||
| Total Risk Alpha | 0.3864 | |||
| Sortino Ratio | 0.2354 | |||
| Treynor Ratio | 1.08 | |||
| Maximum Drawdown | 16.86 | |||
| Value At Risk | (3.23) | |||
| Potential Upside | 3.27 | |||
| Downside Variance | 4.67 | |||
| Semi Variance | 2.96 | |||
| Expected Short fall | (1.78) | |||
| Skewness | 1.14 | |||
| Kurtosis | 6.91 |
Consider Spotify Technology's intraday indicators
Spotify Technology intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Spotify Technology stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Spotify Technology Corporate Filings
6K | 4th of February 2025 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 5th of November 2024 Other Reports | ViewVerify |
Spotify Stock media impact
Far too much social signal, news, headlines, and media speculation about Spotify Technology that are available to investors today. That information is available publicly through Spotify media outlets and privately through word of mouth or via Spotify internal channels. However, regardless of the origin, that massive amount of Spotify data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Spotify Technology news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Spotify Technology relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Spotify Technology's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Spotify Technology alpha.
Spotify Technology Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Spotify Technology can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
The week in Asian football
recently @ www.reuters.com
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Spotify Technology Historical Investor Sentiment
Investor biases related to Spotify Technology's public news can be used to forecast risks associated with an investment in Spotify. The trend in average sentiment can be used to explain how an investor holding Spotify can time the market purely based on public headlines and social activities around Spotify Technology SA. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Spotify Technology's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Spotify Technology and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Spotify Technology news discussions. The higher the estimate score, the more favorable the investor's outlook on Spotify Technology.
Spotify Technology Maximum Pain Price Across April 17th 2025 Option Contracts
Spotify Technology's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Spotify Technology close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Spotify Technology's options.
Spotify Technology Corporate Directors
| Barry McCarthy | Director | Profile | |
| Theodore Sarandos | Director | Profile | |
| Christopher Marshall | Lead Independent Director | Profile | |
| Shishir Mehrotra | Director | Profile |
Additional Tools for Spotify Stock Analysis
When running Spotify Technology's price analysis, check to measure Spotify Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Spotify Technology is operating at the current time. Most of Spotify Technology's value examination focuses on studying past and present price action to predict the probability of Spotify Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Spotify Technology's price. Additionally, you may evaluate how the addition of Spotify Technology to your portfolios can decrease your overall portfolio volatility.