Spotify Technology SA

SPOT: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$372.00	Hstm	Hvmgsbjz

Spotify Earnings: Impressive Listener Growth Indicates Network Effect, but Monetization Lags

Ali Mogharabi

Jul 25, 2023

We are maintaining our $170 fair value estimate, no-moat rating, and Very High Morningstar Uncertainty Rating for Spotify. The stock is down 14% in intraday trading in reaction to second-quarter results and trading more than 15% below our fair value estimate. Nevertheless, we recommend new investors wait for a slightly wider margin of safety.

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