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Upturn AI SWOT - About
SPOT 
Spotify Technology SA (SPOT)
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Upturn Advisory Summary
09/17/2025: SPOT (5-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Number of Analysts
40 Analysts rated it
Highly popular stock, broad analyst coverage, trusted insights, strong investor interest.
1 Year Target Price $753.86
1 Year Target Price $753.86
| 19 | Strong Buy |
| 6 | Buy |
| 13 | Hold |
| 2 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 218.72% | Avg. Invested days 78 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 145.52B USD | Price to earnings Ratio 156.8 | 1Y Target Price 753.86 |
Price to earnings Ratio 156.8 | 1Y Target Price 753.86 | ||
Volume (30-day avg) 40 | Beta 1.72 | 52 Weeks Range 362.00 - 785.00 | Updated Date 09/17/2025 |
52 Weeks Range 362.00 - 785.00 | Updated Date 09/17/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 4.51 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 4.85% | Operating Margin (TTM) 9.68% |
Management Effectiveness
Return on Assets (TTM) 10% | Return on Equity (TTM) 14.81% |
Valuation
Trailing PE 156.8 | Forward PE 51.55 | Enterprise Value 137866729853 | Price to Sales(TTM) 8.76 |
Enterprise Value 137866729853 | Price to Sales(TTM) 8.76 | ||
Enterprise Value to Revenue 7.05 | Enterprise Value to EBITDA 82.54 | Shares Outstanding 205777761 | Shares Floating 155765534 |
Shares Outstanding 205777761 | Shares Floating 155765534 | ||
Percent Insiders 24.32 | Percent Institutions 70.38 |
Upturn AI SWOT
Spotify Technology SA
Company Overview
History and Background
Spotify Technology SA was founded in 2006 in Sweden by Daniel Ek and Martin Lorentzon. Initially facing challenges in securing licensing agreements, it launched in Europe in 2008 and later expanded to the US in 2011. Spotify has evolved from a music streaming platform to include podcasts, audiobooks, and live audio experiences.
Core Business Areas
- Premium: Provides ad-free music listening, offline playback, and higher audio quality. This is Spotify's primary revenue driver, with subscribers paying monthly fees.
- Ad-Supported: Offers free music streaming with advertisements interspersed. Revenue is generated through ad sales to businesses and brands. Users have access to the entire library but with restrictions like shuffle play and lower audio quality.
Leadership and Structure
Daniel Ek is the CEO. The company operates with a distributed agile framework, emphasizing autonomous teams (squads) focused on specific product areas. The board of directors provides oversight and strategic guidance.
Top Products and Market Share
Key Offerings
- Music Streaming: Spotify's core product, offering access to millions of songs and podcasts. Holds around 30.5% global market share in music streaming (2023). Competitors include Apple Music, Amazon Music, YouTube Music, and Deezer. Revenue directly tied to subscriber counts and advertising rates.
- Podcasts: Spotify has invested heavily in podcasts, acquiring studios and exclusive content. Aiming to be the leading podcast platform globally. Competitors include Apple Podcasts, Amazon Music and YouTube. Podcast advertising and subscription-based podcast offerings are revenue streams.
Market Dynamics
Industry Overview
The music streaming industry is characterized by rapid growth, driven by increasing internet penetration and smartphone adoption. Key players compete for exclusive content, personalized recommendations, and user engagement.
Positioning
Spotify is positioned as the leading global music streaming platform with a focus on user experience, personalization, and a vast content library. Competitive advantages include network effects and a strong brand recognition.
Total Addressable Market (TAM)
The global music streaming market is projected to reach over $50 billion by 2027. Spotify is well-positioned to capture a significant portion of this TAM with its established user base and continued innovation in content and features.
Upturn SWOT Analysis
Strengths
- Large user base
- Strong brand recognition
- Vast content library
- Advanced recommendation algorithms
- Global presence
Weaknesses
- Low profitability due to high royalty payments
- Reliance on major record labels
- Limited pricing power
- Competition from tech giants
- User churn
Opportunities
- Expansion into new markets
- Diversification into adjacent audio content (audiobooks)
- Increased monetization through advertising and subscriptions
- Development of new technologies (e.g., AI-powered music creation)
- Partnerships with other businesses
Threats
- Increasing competition from deep-pocketed rivals
- Changing consumer preferences
- Copyright infringement and piracy
- Economic downturns affecting consumer spending
- Potential for regulatory changes
Competitors and Market Share
Key Competitors
- Apple (AAPL)
- Amazon (AMZN)
- Google (GOOGL)
Competitive Landscape
Spotify's advantages lie in its brand recognition and vast content library. Disadvantages include high royalty payments and competition from tech giants with deeper pockets. Spotify needs to continue innovating and differentiating its offering to maintain its competitive edge.
Major Acquisitions
Gimlet Media
- Year: 2019
- Acquisition Price (USD millions): 230
- Strategic Rationale: Expanded Spotify's podcast content library and production capabilities.
Growth Trajectory and Initiatives
Historical Growth: Spotify has experienced rapid user and revenue growth since its inception. Subscriber growth has been a key driver, along with increased advertising revenue.
Future Projections: Analysts project continued revenue growth for Spotify, driven by subscriber additions and expansion into new markets. Profitability improvements are expected as the company scales and negotiates better licensing terms.
Recent Initiatives: Recent initiatives include investments in podcasting, audiobooks, and personalized content experiences. Expansion into new markets and partnerships with telecom companies are also key strategic priorities.
Summary
Spotify is a leading music streaming platform with strong brand recognition and a large user base. Profitability remains a key challenge due to high royalty payments and intense competition. Spotify must continue to innovate, diversify its content, and improve its monetization strategies to achieve sustainable long-term growth and shareholder value. The key to success will be expanding into Audiobooks and similar formats that have less royalty payments.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Market Research Reports
- Analyst Estimates
- Statista
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market conditions are subject to change. Financial data based on most recently available reports.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Spotify Technology SA
Exchange NYSE | Headquaters - | ||
IPO Launch date 2018-04-03 | Founder, CEO & Chairman Mr. Daniel G. Ek | ||
Sector Communication Services | Industry Internet Content & Information | Full time employees 7691 | Website https://www.spotify.com |
Full time employees 7691 | Website https://www.spotify.com | ||
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City, Luxembourg.
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