Added to YB: 2026-04-01
Pitch date: 2026-03-29
SPOT [neutral]
Spotify Technology S.A.
-8.32%
current return
Author Info
No bio for this author
Company Info
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide.
Market Cap
$75.7B
Pitch Price
$472.02
Price Target
500.00 (+16%)
Dividend
N/A
EV/EBITDA
28.07
P/E
28.56
EV/Sales
3.98
Sector
Entertainment
Category
growth
Spotify: Investing in Music During The Age Of AI
SPOT (overview): Global audio platform w/ 750M MAUs, 290M premium subs. Revenue ~90% subscriptions, 10% ads. Premium ARPU ~$4.29/mo (varies by region). Op margin inflected from -5% (2022) to 13% (2025) as scale kicks in. Bear case: capped margins from music royalty costs (~67% of rev), YouTube bundle threat in emerging markets. Bull case: pricing power underused, podcast/audiobook expansion, marketplace promo tools, AI-driven discovery moat. Stock dilution ~1.7%/yr. Fair value $500, buy target $390 (~12%+ IRR).
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