Briefing on the Fundamentals of Spotify Technology (SPOT)

Shares of Large-cap consumer discretionary company Spotify Technology moved 3.3 this afternoon, and are now trading at $159.59 per share. On the other hand, the average analyst target price for the stock is $171.22.

Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide.

Potential Spotify Technology Investors Should Analyze the Following:

  • Spotify Technology has moved 75.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 0.26. A number between 0 and 1 could mean that the market is undervaluing Spotify Technology's estimated growth potential

  • Its Price to Book (P/B) ratio is 15.13

Understanding Spotify Technology's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-02-02 11,727,000 -3,585,000 -6 -700.0
2022-02-03 9,668,000 -2,497,000 1 125.0
2021-02-05 7,880,000 -2,308,000 -4 -300.0
2020-02-12 6,764,000 -1,795,000 -1 0.0
2019-02-12 5,259,000 -1,396,000 -1

Averaging out to -2.2% over the last 5 years, Spotify Technology's operating margins also have a high coefficient of variability, which stands at 126.1%. The firm's margins are declining at a -41.2% compounded yearly rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.