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Alex Morris From The Science Of Hitting Discusses Spotify

May 03, 2021 7:30 AM ETSpotify Technology S.A. (SPOT)2 Comments
Andrew Walker profile picture
Andrew Walker


  • SPOT's stock dropped 10% in the wake of disappointing earnings.
  • Alex Morris discusses why the stock can compound at attractive rates long term despite intense competition from tech giants.
  • We also hit on Spotify's podcasting opportunities and other areas they could get into.

Alex Morris, founder of The Science of Hitting, comes on the podcast to discuss his investment thesis for Spotify (NYSE:SPOT). Topics include how Spotify can compete with larger competitors like Apple (AAPL) and Amazon (AMZN), why Spotify is gaining the upper hand in negotiations with record labels, and how Spotify today rhymes with Netflix (NFLX) in the early stages of their streaming pivot.


0:00 Intro

1:40 Why is Spotify a good investment?

4:40 How the past year built Alex's confidence in SPOT

7:55 Spotify as Netflix 2.0

11:30 Spotify's discover potential versus Netflix home page

13:40 Bear case #1: Competing with giants

17:35 Bear case #2: Lack of operating leverage and dealing with labels

22:10 Touching on the Taylor Swift re-recording

24:40 Bear case #3: Valuation

32:00 Bear case #4: Opportunity cost versus buying Twitter

37:40 Bear case #4 continued: Why not buy a label?

41:37 Live and podcast opportunity

46:10 Spotify's video opportunity

48:20 Content moderation issues

52:45 Spotify's concert and live event opportunity

55:45 What could Spotify acquire?

1:01:40 Alex's closing thoughts

This article was written by

Andrew Walker profile picture
Andrew Walker is a portfolio manager at Rangeley Capital LLC with a focus on small cap special situations investments. He's also the founder of https://yetanothervalueblog.substack.com/ and the Yet Another Value podcast

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (2)

BeverlyBull profile picture
is he bullish or bearish, im confused... there are so many bearish point in the video but the article is label as bullish
Charlie's Munger profile picture
Hmmm...did you guys discuss TME?
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