Connect with us

Hi, what are you looking for?


Is Spotify stock a ‘buy’ after the Q2 report this morning?

Spotify Technology SA (NYSE: SPOT) reported a wider-than-expected loss for its fiscal second quarter on Wednesday. Still, LightShed Partners’ Rich Greenfield says the stock is worth owning here.

The bull case for the Spotify stock

Spotify saw its quarterly ad revenue grow 17% (organically) that, as per Greenfield, is a huge positive ahead of a possible recession. This morning on CNBC’s “Squawk Box”, he said:

They’re growing faster than peers. Of companies that’ve reported so far, Spotify stands out. I’d own it here. It’s the most interesting name people have completely written off. But it’s a stock that has very little competition; they dominate the category.

His constructive view is in line with Wall Street that also has a consensus “overweight” rating on the Spotify stock that’s up roughly 15% on Wednesday.

Highlights of Spotify Q2 report

Lost €125 million (£105.16 million) versus the year-ago figure of €20 million
Per-share loss of €0.85 was significantly wider than last year’s €0.20
Revenue jumped 22.9% YoY to €2.86 billion as per the earnings press release

FactSet consensus was for €0.68 of per-share loss on €2.81 billion in revenue
433 million MAUs (up 18.6%) were more than 428.2 million expected
Premium subscribers climbed 13.9% year-over-year to 188 million

Other notable figures and future outlook

Other notable figures in Spotify’s Q2 report include a 29.5% increase in cost of sales, as gross margin slipped from 28.4% to 24.6%. The NYSE-listed firm now sees 450 million MAUs by the end of the current fiscal quarter – ahead of the analysts’ call for 443.9 million.

Despite the rally after the stock market news this morning, Spotify stock is still down more than 50% versus the start of 2022.

The post Is Spotify stock a ‘buy’ after the Q2 report this morning? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023