Spotify stock surges 153% YTD on growth and valuations, but faces revised earnings estimates

From Nasdaq: 2024-11-29 11:41:00

• Spotify Technology S.A. stock (SPOT) has surged 153% this year, outperforming the industry’s 64% increase and the Zacks S&P 500 composite’s 26% rise.
• SPOT closed at $475.24, near its 52-week high, trading above its 50-day moving average, reflecting bullish investor sentiment.
• Spotify’s growth is fueled by sustained price hikes, loyal customer base, and cost reductions, with premium subscriber revenues accounting for 88% of total revenues.
• Spotify’s stock surge has inflated valuations, trading at a higher forward P/E ratio and enterprise value/EBITDA ratio than the industry average.
• Estimates for SPOT’s earnings have seen downward revisions, signaling challenges in meeting growth expectations, prompting a cautious hold strategy for investors.
• A report highlights the potential for nuclear energy stocks to profit from a global push to triple nuclear energy capacities, with key players and technologies driving the opportunity.

Read more at Nasdaq: Spotify Stock Skyrockets 153% YTD: Here’s How You Should Play It