Spotify Technology SA

SPOT: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$695.00	Wvhw	Rcgctzpgg

Spotify Earnings: Stellar Profits While Revenue Growth Accelerates

Matthew Dolgin

Apr 23, 2024

Significant margin improvement was the most encouraging component of no-moat Spotify’s excellent first-quarter results. Revenue growth accelerated and was in line with management’s guidance, which is encouraging, considering the cost-cutting program put in place in 2023 and monthly active users coming in slightly below management’s target. We’re raising our fair value estimate to $230 from $215, but it’s difficult for us to rationalize the stock’s valuation.

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