The world’s largest streaming music provider is open for trade and it’s blowing the fucking barnyard doors clean off their hinges.
Music streaming company Spotify now public at $165.90. @FoxBusiness #spotify $spot pic.twitter.com/uOQm2Rf463
— Partsinevelos (@KristinaParts) April 3, 2018
The company came public via direct listing, the first of its kind.
We $SPOT something exciting happening tomorrow pic.twitter.com/5zXEiuBrUE
— NYSE (@NYSE) April 2, 2018
Sweden-based Spotify is available in 61 countries with an overall user base that includes ad-supported free listeners of 159 million, and 70 million paying users as of January 2018. The company was founded in 2006 by Martin Lorentzon and Daniel Ek, who remains its current CEO.
Spotify’s IPO paperwork showed that it is going through a tremendous amount of cash — posting revenue last year of €4,090 million (nearly $5 billion) and a net loss of around €1,235 million (or about $1.5 billion) for the same period — but its gross margin is growing, thanks to newly negotiated licenses with the major labels. These deals not only reduce Spotify’s royalty payouts, but will allow the company to predict their music costs for several years.
With over 70m subs and a rapidly expanding revenue base, I’d venture to say this is the closest thing we have that compares to NFLX. The only problem, of course, is the fact that it already trades with a market cap of $30 billion. However, at 6x sales, it’s not exactly overly expensive, in spite of the fact that it’s quickly burning thru cash. But who cares about profits, nowadays?
If you enjoy the content at iBankCoin, please follow us on Twitter
Higher.
Definitely the next NFLX. Unfortunately, they have really bad timing. If you want to do a short NFLX/long SPOT pairing, go for it, otherwise let this dog lie.
Also, its gross margins *are* growing but what isn’t mentioned is that their *net* margins are *dropping* from -12% in 2105, to -18% in 2016, to -30% in 2017.
http://ibankcoin.com/flyblog/2018/04/02/futures-yellen-soft-come-get-exodus-baboon-titted-manlet/#comment-548385
Both a free with ads and paid version? no way this blows my mind. How can they make any money by not selling ad only all over the place. Going to 80 like groupon and snapchat and twitter in a couple months. Only ad supported revenue is a viable way to “monetize” internets. nflx has no free version will fail to goobles youtube. everything should be free with ads. this facebook / tv network strategy makes the most sense.
It does not compute why sheep bother with Spotify etc. I get all my shit on Pirate Bay,
https://thepiratebay.org/
I actually don’t like their radio station music selection and I think SPOT isn’t a great long-term investment. This is hardly the NFLX of radio. NFLX creates their own content, but Spotify is just licensing the same music catalogs that Youtube Music, Apple Music, Amazon Music, Pandora, and anyone else with money can license. Where is the moat?
12% off the highs.
Officially in a correction.
Maybe we’ll get a $SPOT bear market by tomorrow?
This is what happens when you don’t higher underwriters.
Is this like the modern equivalent of napster? How is it better than pandora? Napster sucked.
Fun fact: apparently no one under 35 uses Pandora. But like you, I prefer Pandora’s AI “radio station” selections much more than Spotify’s.