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Spotify: Top Subscription Stock With A Sell Recommendation


  • High inflation, a slowing economy, competition, and investor fear are affecting subscriber growth numbers and eating into the profits of popular tech and subscription stocks.
  • Pandemic darlings are becoming duds and their stocks are falling to major lows. With market volatility, many companies do not possess the fundamentals to endure this climate.
  • Using the Seeking Alpha Quant System, you can see why the highlighted stock is a strong sell.

Spotify Hosts The Joe Rogan Experience Podcast

Cindy Ord/Getty Images Entertainment

Subscription services stocks, the spec tech to avoid

Speculative technology, aka spec tech, and the technology behind these firms have long-term viability in the race to digitization and Ai. Given the macro environment, these software and subscription-based tech services are

This article was written by

Steven Cress profile picture

Head of Quantitative Strategies at Seeking Alpha.

Data analysis and interpretation have taken center stage in my career. For my purpose, the interpretation of data is the process of making sense of statistics that have been collected, analyzed, and scored. This skill-set has served as a solid foundation for me to identify trends and make transparent predictions in the course of money management. It has also allowed me to develop user-friendly web-based tools that furnish individuals with the indicators and signals to instantly interpret the strength or weakness of a company's value. Importantly, this expertise has helped me build Wall Street trading desks, launch international hedge funds, and construct a SaaS FinTech investment research company.

Prior to my role at Seeking Alpha as the Head of Quantitative Strategies, I founded a Hedge fund and Asset Management company (Cress Capital Management), I was the Head of International Business Development at Northern Trust, and the majority of my career was at Morgan Stanley running a proprietary trading desk.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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Comments (10)

Ridoy mia profile picture
আপনাদের এড গুলো অনেক ভালোলাগে আমার এবং আমি আপনাদের ওয়েপ সাইড থেকে অনেক কিছু পেয়েছি
farkle mcnab profile picture
Spotify rips off musicians and content creators. I know as I used to make a decent living selling my original music CDs but once streaming took over I make much less than a $0.001 a listen and my ability to make money from streaming is about 700% less than revenue from downloads and MUCH less than selling a fan a CD. But it's not only Spotify; Google/YouTube Music is a rip off too. Apple and Amazon at least make an attempt to get listeners to buy downloads as well as pay a small amount more than Spotify/YouTube.
Roger80 profile picture
@farkle mcnab I think that who swindles musicians and creators are the record companies. If you don't look at the Spotify accounts where the money goes, they lose money.
Cranios profile picture
@farkle mcnab Can't argue with your experience.
As an aside: going into a field that people are willing to do simply for the love of it (e.g., music, art, sports) is not likely to lead to money. Too many suppliers and too few consumers.
The streaming business's lack of profits reflects this imbalance. If Spotify were ripping off creators as you say, then their business would be wildly profitable, but it isn't. The problem is the imbalance of too many creators swimming upstream like a horde of salmon, and too few consumers.
Maybe a few rock stars and Picasso types are the exception, but that's what they are - an exception.
If you want to make money, go into something that other people don't like to do.
@farkle mcnab - Sorry for your experience. You said something, however, that triggered my math peeve. One thing cannot be "700% less" than another thing. That is not the way math works. One thing can be 70%, 90%, 99%, or some other percentage less than another thing but "700% less" is not possible. Sorry, but I am so tired of incorrect math being thrown around. You're a musician, so you get a partial pass.
Cranios profile picture
130 X EBITDA !! Don't really need to read much beyond that, do we? Talk about the Greater Fool Theory in action! Yikes.
No Guilt profile picture

Go buy IBM
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