Spotify Technology SA

SPOT: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$166.00	Tjwdz	Cfmsnkwmg

After Successfully Scaling Its User Base, Spotify's Profitability Is Beginning to Follow Suit

Matthew Dolgin

Jul 23, 2024

Business Strategy and Outlook

Spotify is the world’s leading music streaming service provider. We expect fast-growing digital streaming to become the primary distribution platform of choice in the ever-changing music industry. We believe Spotify can benefit from various network effects that will help it increase users and amass valuable intangible assets associated with user data and listening preferences. However, it faces intense competition from huge tech platforms with greater resources, and it has a largely variable cost structure that may limit future operating leverage and profitability.

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