Been averaging into Spotify quite aggressively lately. It’s below IPO reference price of 132 and it started trading at 165 in 2018.
Surely it is underpriced now. What do you think ? Does it have a future.
By the way I’m mostly a passive investor and I think Spotify is my most risky asset. All others are index funds or companies like Ahold, Shell, ABN, Google, Microsoft, McDonalds and some more. I dont do research in the sense that I look at their cashflow and reports. I don’t have the knowledge and time. I buy what I use in daily life and will still do in 20 years time. So thinking Spotify is underpriced is a gamble for me.
What it sold for in 2018 doesn’t really matter. Price history is not a great way to look if a stock is ‘underpriced’.
I haven’t done much research of Spotify, but from what I read they mainly haven’t been profitable in the last 4 years because the margins are pretty bad. (which will probably only get worse if there gets more competition like Youtube music)
Seems to me it will also be one of the first ones to drop if we will enter a bear market. It feels rather similar to Netflix (at least Netflix has a nice P/E now though… )
Maybe someone else can give you an in depth review of Spotify, but to me it sounds like a very risky stock. Especially with a recession around the corner.
Can’t help ya with that mate, I think Spotify sounds really nice to have in your portfolio but if you look in to it, I would sell ( NFA) why? Because they are not making that much money … It sounds nice and they can go up but if the market sentiment is bad they will go down.
Ooh my. Sounds like Spotify is even more risky than I thought! And today the quarterly result are published.
That’s good to know. I just started with investing so this forum helps me very much.
But if you like the company and you see an future and growth in it, then it is on you, too buy. We can’t make that decision for you mate
I think in the end they have a good product and that’s why I buy the stock.
I invest in crypto only nowadays, but when I did buy stocks, I would not invest in companies if Apple has entered their market. Most of the times it does not end well.
Even though I do not underestimate Apple. Their track record speaks for itself. It is a company that only caters to consumers in their own ecosystem.
Hi @FromHolland I recently listened to this Dutch podcast. They did a fundamental analysis on Spotify.
I also found this article this morning:
Personally not a big fan of Spotify because I think that those big music labels have way too much power and cost Spotify a lot of money.
Thank you Fergus. Very helpful!
Hmmm it is hardly profitable, fun fact their is an expression about dca’ing stocks that are falling
- Never catch a falling knife
- Dca’ing is for losers.
Furthermore I would not use methods which uses historical prices for stocks to valuate a stock. Also, the podcast mentioned above is nice. But it is their opinion. Like buffet said: always use your own common sense. If you think Spotify is 169 dollar then you should consider buying it. If you think. It doesn’t get very profitable then stay out of it