SPOTIFY-Turn the Music Up!

SPOT
Why did profit drop?

Spotify reported an operating loss of $75M — at first glance, that looks bad. But there’s logic behind it:
• Increased spending on marketing and podcast development (long-term investment)
• Higher royalty payments — short-term pressure
• Expansion of features and product offerings — costs now, growth later
What’s good?
• Revenue up 17% YoY — Spotify keeps growing steadily
• Premium subscribers +14% — user base continues to expand
• Streaming cost per user is decreasing
• Podcasts and audio ads growing faster than expected
• Announced $1B share buyback program
Technically:
• Bounce from the bottom of the rising channel — strong support
• Upside potential to $800 (~+23%) if trend holds
Spotify is investing in growth. Yes, it hurts earnings now, but markets care more about direction than past numbers. And right now, the arrow points up.