Opening back at the start of April at $169.90, a decent whack higher than the IPO price of $132, the subscription service ended up closing its first day of trading at $149.01, roughly in the middle of those 2 poles. The months that followed saw the stock accrue new fans, twice crossing $196, first at the end of July and then one month later at the end of August.
But since then the shine has come off the new stock, with the company dragged lower as part of the wider tech sell-off. Spotify Technology SA now sits at a current trading price of $139.14.
The firm’s latest update – the second of its tradeable tenure – came at the end of July. Between Q1 and Q2, Spotify added a better than forecast 8 million paid subscribers, taking the total number to 83 million, a 40% increase year-on-year. Overall monthly active users, meanwhile, was up 30% y/y to 180 million.
As for revenue, that rose 26% to €1.273 billion, though the company did state that the implementation of a new data policy slowed growth. It went on to claim that it ‘course corrected’ early in Q3, and has subsequently seen a ‘recovery in the business’.
In terms of the outlook for Thursday’s Q3 figures, Spotify is expecting 85 million to 88 million premium subscribers, a 36-43% rise year-on-year, with total revenue forecast to come in between €1.2 billion and €1.4 billion, a 17-36% increase. The company also estimated an operating loss of €10-90 million.
Spotify Technology SA (NYSE:SPOT) has a consensus rating of ‘Buy’ alongside an average target price of $206.58.
"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."