From Nasdaq: 2024-07-31 13:18:00

Spotify Technology S.A. reported mixed second-quarter 2024 results, with earnings beating but revenues missing estimates. Total revenues increased by 20% year-over-year, driven by a rise in premium and ad-supported revenue. The company also saw a 14% growth in total monthly active users, with premium subscribers growing 12%.

Spotify’s financial performance has been strengthened by sustained price hikes, a loyal consumer base, and cost reductions. Premium subscriber revenues, which make up 88% of total revenues, play a crucial role. The company remains relatively undervalued compared to industry peers.

Analysts are upbeat about Spotify’s future, with estimates for third quarter 2024 earnings and revenues showing significant growth. The stock is currently a Zacks Rank #1 (Strong Buy), with expectations of continued growth and profitability in the music-streaming sector.

A research chief has named Spotify as a promising investment opportunity, with strong financial health and growth prospects. The company’s ability to balance higher subscription pricing with user growth makes it an attractive choice for investors. The stock is positioned for potential price appreciation in the near future.



Read more at Nasdaq: Is Spotify (SPOT) Stock Worth Buying After Mixed Q2 Show?