Not just a Premium user, but from today also a proud co-owner. The best entry opportunities often arise in phases of uncertainty. That's why $SPOT (+2,22 %) is a new addition to my portfolio as of today.
Why now? Here are 3 reasons why the share is currently a must-have for me:
1. the profitability machine is running 📈
Spotify is no longer just the app we all use - it's now a highly profitable company. With over 713 million users worldwide and a massive focus on expanding margins (audiobooks, podcasts, price increases), profits are booming. The operating result has recently beaten all expectations.
2. the "buy the dip" moment 📉
The share has corrected in recent months and is trading well below its all-time highs. Analysts (from Goldman Sachs to Deutsche Bank) see fair values at USD 750 and more in some cases. We are therefore currently getting the company at a substantial discount to "fair value". Technically speaking, the USD 400 area is an exciting zone to enter.
3. pricing power & innovation 💡
Whether price increases or new AI features: Users remain loyal. Cancellation rates are minimal, which shows how indispensable the service has become for us. That's the kind of moat I want to have in the depot.
The new figures will be published on February 10. I'm excited, but the long-term story is crystal clear to me: Spotify dominates the audio market.
What about you? Are you on Team Stream & Hold or are you still watching from the sidelines?
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