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Upturn AI SWOT - About
SPOT 
Spotify Technology SA (SPOT)
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Upturn Advisory Summary
04/01/2025: SPOT (5-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 282.84% | Avg. Invested days 83 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 112.94B USD | Price to earnings Ratio 91.95 | 1Y Target Price 669.39 |
Price to earnings Ratio 91.95 | 1Y Target Price 669.39 | ||
Volume (30-day avg) 2632228 | Beta 1.67 | 52 Weeks Range 267.76 - 652.63 | Updated Date 04/1/2025 |
52 Weeks Range 267.76 - 652.63 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 6 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-03-17 | When After Market | Estimate 2.0625 | Actual 1.76 |
Profitability
Profit Margin 7.26% | Operating Margin (TTM) 12.26% |
Management Effectiveness
Return on Assets (TTM) 8.65% | Return on Equity (TTM) 28.28% |
Valuation
Trailing PE 91.95 | Forward PE 51.81 | Enterprise Value 107047590327 | Price to Sales(TTM) 7.21 |
Enterprise Value 107047590327 | Price to Sales(TTM) 7.21 | ||
Enterprise Value to Revenue 6.31 | Enterprise Value to EBITDA 66.02 | Shares Outstanding 204707008 | Shares Floating 154030951 |
Shares Outstanding 204707008 | Shares Floating 154030951 | ||
Percent Insiders 24.32 | Percent Institutions 67.69 |
Analyst Ratings
Rating 4.11 | Target Price 476.97 | Buy 8 | Strong Buy 18 |
Buy 8 | Strong Buy 18 | ||
Hold 9 | Sell 1 | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Spotify Technology SA
Company Overview
History and Background
Spotify Technology SA was founded in 2006 in Stockholm, Sweden, by Daniel Ek and Martin Lorentzon. Launched in 2008, it initially offered a free, ad-supported streaming service. Key milestones include expanding to the US in 2011, going public on the NYSE in 2018 (as SPOT), and consistently growing its user base and content library.
Core Business Areas
- Premium: Provides ad-free music and podcast streaming, offline downloads, and higher audio quality to paying subscribers.
- Ad-Supported: Offers free access to music and podcasts with advertising interruptions.
Leadership and Structure
Daniel Ek is the CEO. The company has a traditional hierarchical structure with various departments focusing on engineering, product development, marketing, content acquisition, and sales. Board of Directors includes key executives and independent members.
Top Products and Market Share
Key Offerings
- Spotify Premium: Ad-free music streaming service. Spotify has approximately 239 million Premium subscribers as of Q1 2024. Competitors include Apple Music, Amazon Music, and YouTube Music.
- Spotify Ad-Supported: Free music streaming with ads. It has about 356 million monthly active users (MAUs) that consume ad-supported content. Competitors include Pandora, iHeartRadio, and other free streaming services.
Market Dynamics
Industry Overview
The music streaming industry is experiencing continued growth, driven by increased smartphone adoption, improved internet access, and consumer preference for on-demand music. The podcasting market is also rapidly expanding.
Positioning
Spotify is a leading player in the music streaming industry, known for its extensive music library, personalized playlists, and podcast offerings. Its competitive advantages include a large user base and strong brand recognition.
Total Addressable Market (TAM)
The global music streaming market is projected to reach over $45 billion by 2027. Spotify is well-positioned to capture a significant portion of this TAM due to its large subscriber base and established presence. Podcast ads estimated TAM to be in the $70 billion range and Spotify is well-positioned with the scale that it is achieving.
Upturn SWOT Analysis
Strengths
- Large user base
- Extensive music and podcast library
- Strong brand recognition
- Proprietary algorithm to predict what music user likes
- Personalized playlists and recommendations
- High customer retention rate for Premium subscriptions
Weaknesses
- Limited profitability
- High royalty costs
- Dependence on record labels
- Price increases are a cause for concern
- Competition on price
Opportunities
- Further international expansion
- Growth in podcasting market
- Development of new audio formats (e.g., audiobooks)
- Partnerships with hardware manufacturers
- Increase ARPU through bundle deals
Threats
- Intense competition from Apple Music, Amazon Music, and YouTube Music
- Changes in royalty rates
- Piracy and copyright infringement
- Economic downturn affecting consumer spending
- Content exclusivity deals by competitors
Competitors and Market Share
Key Competitors
- AAPL
- AMZN
- GOOG
Competitive Landscape
Spotify maintains a leading market share, but faces intense competition from deep-pocketed tech giants. Its competitive advantage lies in its curated playlists and social features. The cost to provide music, though, hurts profits due to royalty payouts.
Major Acquisitions
Findaway
- Year: 2022
- Acquisition Price (USD millions): 116.3
- Strategic Rationale: Findaway expands Spotify's reach into the audiobook market, allowing them to offer a broader range of audio content and compete more directly with Amazon's Audible.
Growth Trajectory and Initiatives
Historical Growth: Spotify has experienced rapid growth in user base and revenue over the past decade. It has expanded its geographic reach and diversified its content offerings.
Future Projections: Analysts predict continued growth in user base and revenue, driven by international expansion and growth in the podcasting market. Profitability is expected to improve over time. Revenue is expected to be ~$15 Billion in 2024.
Recent Initiatives: Recent initiatives include investments in podcast content, expansion into new markets, and development of new subscription tiers.
Summary
Spotify is a leading music and podcast streaming service with a large user base and strong brand. Despite consistent revenue growth, profitability remains a challenge due to high royalty costs. Expansion into new markets and content formats, such as audiobooks, present growth opportunities. Competition from tech giants and fluctuating royalty rates pose potential threats, but Spotify's brand loyalty and personalized features help mitigate these risks.
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TME
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Sources and Disclaimers
Data Sources:
- Spotify Investor Relations
- Market Research Reports (e.g., Statista)
- Company Filings (SEC)
- Earnings Call Transcripts
- Third party analysis tools
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Spotify Technology SA
Exchange NYSE | Headquaters - | ||
IPO Launch date 2018-04-03 | Founder, CEO & Chairman Mr. Daniel G. Ek | ||
Sector Communication Services | Industry Internet Content & Information | Full time employees 7691 | Website https://www.spotify.com |
Full time employees 7691 | Website https://www.spotify.com | ||
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City, Luxembourg.
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