Key Factors to Consider Before Investing in Spotify Technology (SPOT)

By Chris Stiles • Monday, February 12 15:37 • Permanent Link

One of the losers of today's trading session was Spotify Technology. Shares of the Broadcasting company plunged -2.7%, and some investors may be wondering if its price of $234.2 would make a good entry point. Here's what you should know if you are considering this investment:

Spotify Technology has moved 96.8% over the last year, and the S&P 500 logged a change of 21.5%
SPOT has an average analyst rating of buy and is -9.4% away from its mean target price of $258.49 per share
Its trailing earnings per share (EPS) is $-2.94
Spotify Technology has a trailing 12 month Price to Earnings (P/E) ratio of -79.7 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $5.38 and its forward P/E ratio is 43.5
The company has a Price to Book (P/B) ratio of 18.3 in contrast to the S&P 500's average ratio of 2.95
Spotify Technology is part of the Consumer Discretionary sector, which has an average P/E ratio of 22.96 and an average P/B of 4.24
The company has a free cash flow of $673.12 Million, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City, Luxembourg.

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.