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Spotify: Neither Disruptive Nor Innovative; Ripe To Be Disrupted; Sell Now

Apr. 04, 2022 12:13 AM ETSpotify Technology S.A. (SPOT)55 Comments


  • While Spotify built up an impressive music business, we recommend investors sell their shares as growth is beginning to slow amidst rising interest rates and turmoil in Western Europe.
  • We believe Spotify's business will be under severe strain due to slowing subscriber growth, increasing churn, limited differentiation, and increasing competition.
  • Competition from Apple, Amazon, and Google will continue to intensify as these large vendors will bundle their products and services, making it hard for Spotify to compete.
  • The era of easy-subscriber growth is over, and the company would need to invest heavily to keep the growth going. We expect Spotify to produce its content to remain relevant.
  • Spotify stock is not cheap and is priced for perfection. We can foresee the stock below $100 this year. Therefore, we recommend that investors sell the shares.

Music Streaming Service Spotify Goes Public On The New York Stock Exchange

Spencer Platt/Getty Images News

While Spotify (NYSE:SPOT) built a remarkable music streaming business, we would urge investors to stay away from the stock, given slowing subscriber growth, increasing churn, lofty valuation, limited differentiation and increasing competition. With Eastern Europe in turmoil with the Ukrainian

Sell-side ratings and price targets


Valuation table for high media peer group


YTD stock performance


2021 Stock Performance


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