More of them will show up as it approaches $180 per share. There will be sellers lurking after a 15% rally. But there’s no reason why it cannot enjoy impressive strength. It’s realistic not to expect a return to $300 per share this year. Therefore, if the stock market stabilizes, SPOT is likely to have upside potential.
Simplest logic suggests that this is not an obvious place to exit the stock. There is no obvious bloat in these financial metrics. This is apparent from the low value of two for its price-to-sales ratio. Although they are still slightly net income negative, stock owners now have realistic expectations. Gross margins are seven times bigger than 2016. Last year revenues were almost double those of 2018. Somehow it’s mystery to the bears, but the numbers don’t lie. If the support fails, traders should exit the longs and wait for a better entry lower.įrom an investment perspective, the financials reveal good news. This aspect of my thesis is tactical, so it should come with a specific stop loss. So, the logical assumption is that it will hold again this time. Technically, SPOT stock has fallen into a zone that has served as a base for four rallies.
The first technical, the second fundamental and the third simply draws on pure logic. My note today is bullish from three angles. Judging by the numbers in the financial statements, nothing can be further from the truth. Sadly, SPOT stock has acted like the wheels are falling off the wagon. In fact they are thriving if we judge its success by growth. Some experts deemed the company dead, but here it is surviving. I remember days when the biggest Spotify worry was the competition from Apple (NASDAQ: AAPL). After all, this is an important show so there is monetary incentives to “work things out.” So far, it looks like they are up to the task. Strong companies can survive major tests like these. The show’s popularity will likely survive this, and so will SPOT stock. Then it morphed into using racist language in past episodes. Initially it was from public concerns about presenting misleading covid-19 vaccine information. The mess started with an interview on the Joe Rogan Show with Dr. The company recently fell into hot water from controversial headlines, but SPOT stock can likely weather the storm.
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