Spotify Technology SA
SPOT: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$346.00 | Scmyn | Ytvzldtjh |
Spotify Earnings: Significantly Improving Profitability Drives Our Fair Value Estimate to $250
Record operating income and an outlook foreshadowing another huge jump in profit underpinned a 10% rise in Spotify’s stock following its second-quarter earnings release. The firm has now posted operating profit in three of the last four quarters after historically generating losses, giving us more confidence that the business has matured and can achieve consistent profitability. A rise in our margin assumptions leads us to increase our fair value estimate to $250 from $230.