|Bid||277.15 x 1000|
|Ask||278.14 x 900|
|Day's range||273.52 - 278.93|
|52-week range||109.18 - 279.76|
|Beta (5Y monthly)||1.65|
|PE ratio (TTM)||N/A|
|Earnings date||29 Jul 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||189.78|
Spotify (SPOT) closed at $278.24 in the latest trading session, marking a +1.26% move from the prior day.
It's been a little over a year since music streaming leader Spotify (NYSE: SPOT) launched in India, one of the company's most significant geographical expansions in recent memory. CEO Daniel Ek has made it clear that Spotify wants to eventually be in "every market in the world." Music Business Worldwide reports that Spotify is planning to launch in Russia on July 15, citing anonymous industry sources.
After Spotify's (NYSE: SPOT) recent string of podcasting deals, it's kind of weird to see a podcast acquisition where Spotify isn't involved. E.W. Scripps (NASDAQ: SSP) has been shopping around its Stitcher podcast platform for a couple of weeks, and it looks like it found a buyer in SiriusXM (NASDAQ: SIRI). At the time of the acquisition, Spotify CEO Daniel Ek exclaimed: "We bought the next ESPN."
It's tempting to compare Spotify's (NYSE: SPOT) recent push into original podcast content to Netflix's (NASDAQ: NFLX) wildly successful expansion into original video content. The Swedish music streaming leader has even directly encouraged such comparisons. Former CFO Barry McCarthy, who had previously served as Netflix CFO and retired earlier this year, put it bluntly last October: "So streaming was to Netflix as podcasting is to Spotify."
Sirius XM (SIRI) is set to acquire Scripps' podcast platform, Stitcher in an attempt to strengthen its position among other competitors in the podcasting industry.
Spotify (NYSE: SPOT) shares have soared following a string of podcasting deals. Bernstein analyst Todd Juenger downgraded Spotify's stock recently, believing the run-up in price isn't fully justified by its podcast investments. "We continue to believe it's unlikely Spotify will generate much earnings from podcasts," he wrote in a note.
Interested in low-priced shares of companies with high potential? Consider these arguments for investing in iHeartMedia and Bed Bath & Beyond.
(Bloomberg) -- Palantir Technologies Inc. said it filed confidentially with U.S. regulators for a public stock listing, taking a major step toward a market debut that has been many years in the making.The secretive Silicon Valley company, which sells data analysis software used by governments and large companies worldwide, is seeking to go public by the fall, Bloomberg previously reported, though the timing could change.Palantir has been weighing a direct listing of its shares on an exchange against an initial public offering, people with knowledge of the deliberations have said.The company said in a statement Monday that it had filed with the U.S. Securities and Exchange Commission for a “public listing” of its stock, wording that has been used by other companies planning to pursue a direct listing. Such announcements typically specify a company is planning an IPO when that is the case. Palantir may still decide to pursue a traditional IPO to raise capital for the business.Palantir is in the process of raising $961 million, $550 million of which it has already secured, according to a filing earlier this month with the SEC. That includes a $500 million investment from Sompo Japan Nipponkoa Holdings Inc. and $50 million from Fujitsu Ltd.Those sums make listing the stock directly a more accessible path for Palantir, following in the footsteps of Spotify Technology SA and Slack Technologies Inc.A direct listing wouldn’t let Palantir raise money by issuing new shares, but it would allow it to bypass an investor roadshow and other formalities of an IPO, while letting current stockholders sell their shares at the opening bell rather than waiting until the end of a lock-up period.Billionaire Peter Thiel founded Palantir in 2003 with a group of business partners including Alex Karp, the chief executive officer. In 2015, Palantir reached a valuation of $20 billion, though in recent years stockholders have sold blocks of shares for much less. It isn’t clear what valuation the company would seek in going public.Breaking EvenThe company told investors this year that it expects to break even in 2020 on revenue of about $1 billion.In June, Palantir added three directors including the first woman to serve on its board, former Wall Street Journal reporter Alexandra Wolfe Schiff.Dozens of law enforcement and government agencies around the world use Palantir to compile and search for data on citizens with the intent of combating crime, hunting terrorists and in recent months, tracking the spread of Covid-19. The pandemic has boosted business as companies use its products to help determine how to reopen.However, Palantir is highly controversial for the way its tools have been used to compromise privacy and enable surveillance. Its use by police and immigration officials, in particular, has sparked numerous protests.Valuation ConcernThe Palo Alto, California-based company had long resisted a public offering to avoid getting valued as a consultancy, and to stay out of the public eye as it worked toward profitability, people familiar with the matter have said.Its dependence on engineers customizing software for each client and bloated cost structure also resulted in consistent annual losses. That heightened the possibility that it wouldn’t be valued as a software company despite its Silicon Valley credentials.That changed last year, with customers using a new more automated product that has put Palantir on the path toward profitability.Palantir’s funders include Founders Fund, the venture capital firm started by Thiel. Other investors include Morgan Stanley, BlackRock Inc. and Tiger Global Management.Thiel, a co-founder of Pay PayPal Holdings Inc., has helped launch or advance Silicon Valley firms including Facebook Inc., where he has been a board member since 2004. Through Founders Fund and other investments, his influence has been extended to an array of technology companies. Thiel has also served as an adviser to President Donald Trump, chastising other technology companies, in particular Alphabet Inc.’s Google, for their reluctance to work with the Defense Department.(Updates with statement details in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Scooter Braun, Ithaca Holdings Chairman & SB Projects Founder, joins 'Influencers with Andy Serwer'
Spotify Technology S.A. (NYSE: SPOT) will post its second quarter 2020 financial results and letter to shareholders on Wednesday, July 29, 2020 before market open.
(Bloomberg Opinion) -- Europe has its first $50 billion internet company: Spotify Technology SA breached the mythical barrier on Thursday. While it’s a moment worth savoring, the Swedish company isn’t entirely deserving of the inflated price tag. Unfortunately, investors seem a little out of tune with the music streaming service’s real potential.The stock has more than doubled from a March low, spurred by an aggressive push into podcasting. Since May it has signed deals with podcasting giant Joe Rogan, Superman and Wonder Woman parent DC Comics and reality TV star Kim Kardashian, adding to acquisitions such as the $230 million deal for production house Gimlet Media Inc. Altogether, it’s a $1 billion bet on a flourishing industry.It’s nice to see a European tech company finally flying high. The continent has long bemoaned its lack of a consumer-internet company to rival the giants of Silicon Valley. The continent’s tech behemoths often struggle to capture the popular imagination: Germany’s SAP SE makes enterprise software, ASML Holding NV builds machines to make semiconductors and Amsterdam-based investor Prosus NV owes its 138 billion-euro ($155 billion) valuation to a 31% stake in Chinese tech giant Tencent Holdings Ltd. Spotify is a rare success.The podcasting strategy of Chief Executive Officer Daniel Ek is shrewd, but alone it is not going to fix Spotify’s biggest problem: paying a giant slice of revenue to the record industry for royalties. That expenditure is why it has a pitiful (for an internet company) gross margin of just 25%.Yes, podcasts will reduce the Stockholm-based firm’s dependence on music for its income, allowing it to chase higher margin advertising dollars where it won’t have to pay a cent to the record labels. But advertising is still likely to remain a small slice of total revenue. Bloomberg Intelligence analyst Amine Bensaid estimates ad revenue will account for just 12% of sales by 2022, up from 8% this year. The impact on the gross margin will be limited.For sure, Spotify is concentrating on the right trends. Revenue in the U.S. podcast market is set to double to $1.4 billion by 2024, and that will help Spotify’s business slowly become more like Netflix Inc. The video streaming giant pays a flat rate for content, meaning that every additional subscriber brings incremental profit.But investors are already valuing Spotify more generously than Netflix. Including cash and debt, it’s valued at 48 times the analyst consensus for its 2024 Ebitda, a measure of earnings. Netflix is valued at just 18 times expected 2024 Ebitda. Even using the most optimistic analyst estimate for that year, Spotify is valued at more than 22 times Ebitda. Investor expectations are out of kilter with reality.What’s more, deep-pocketed rivals such as Apple Inc. and Amazon.com Inc. are also eagerly eyeing podcasts. Both firms have been seeking to develop more original shows, Bloomberg News has reported. Podcasting is a slightly different proposition for the two tech giants, since, if successful, they can subsequently be adapted for their video streaming offerings where Spotify doesn’t compete. There will be a lot of hands taking money from the increasingly lucrative podcast pot.The market reaction is hardly CEO Ek’s fault. He’s making much-needed bets to diversify his firm away from its reliance on the record industry. But investors are dancing a little too exuberantly to his melody.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The top streaming video company created incredible growth for itself with original shows and movies -- can Spotify duplicate that success with podcasts?
The key to finding a stock that offers explosive potential gains is finding a company that has an enormous growth opportunity ahead and a highly profitable future. It can potentially help if it is highly doubted among the investment community. Up until the last couple months, audio streaming giant Spotify (NYSE: SPOT) fit this description perfectly.
Kim Kardashian's latest deal with beauty conglomerate Coty values her company at $1 billion, but questions loom over her own billionaire status.
Shares of Spotify (NYSE: SPOT) gained 42.7% in June, according to data from S&P Global Market Intelligence. Spotify stock posted big gains in the middle of last month after the company announced a string of new podcast deals and received favorable ratings coverage from analysts.
Over the last three months, shares of Zillow Group (NASDAQ: Z)(NASDAQ: ZG), Carvana (NYSE: CVNA), and Spotify (NYSE: SPOT) have more than doubled. Shares of Zillow Group tanked during the early COVID-19 panic. The market feared the real estate industry would grind to a halt due to social distancing and the possibility of tighter lending standards.
Deezer, the music streaming service backed by billionaire Leonard Blavatnik, is making a big bet on the fast-growing Mexican market through a partnership with media mogul Ricardo Salinas, which values the Spotify rival at €1.3bn. Grupo Salinas’ TV Azteca will take a minority stake whose size has not been disclosed in Paris-based Deezer, one of whose biggest shareholders is Sir Leonard’s Access Industries. The Mexican conglomerate will promote Deezer through its television businesses and Grupo Elektra retail stores, in exchange for an undisclosed share of revenues.
Spotify today announced it is expanding Premium Duo, a feature that allows two people who live at the same place -- say couples or flatmates -- to share one subscription plan while maintaining their own individual accounts, to dozens of new markets. Premium Duo is a remarkable concept from Spotify, which it first began testing in March last year and expanded to 19 markets months later. Starting Wednesday, Spotify Premium Duo is now available in 55 markets.
Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at Electronic Arts (EA), Snapchat (SNAP), ImagineAR (IPNFF) (IP.CN), and Spotify (SPOT). Accelerating Digital Transformation is driving new mega trends in consumer behavior - from streaming to esports, augmented reality and more.
A proposed change to direct listings could attract more public debuts and woo companies away from traditional IPOs — if the SEC approves the move.
(Bloomberg) -- About a year into a U.S. antitrust investigation of Apple Inc., Justice Department lawyers are scrutinizing rules that require many app makers to use the company’s payment system, according to people familiar with the matter.Government lawyers have met with developers as recently as last week and are asking questions about Apple’s rules that require apps to use its App Store payment system for subscriptions, said the people, who declined to be identified discussing a confidential matter. Apple pockets up to a 30% cut when apps use the payment technology.The Justice Department has been interviewing developers about Apple since mid-2019, the people said. The inquiry is continuing and no final decisions have been made about whether to bring a case.Most of the resources of the department’s antitrust division are focused on an investigation into Alphabet Inc.’s Google that involves the search giant’s power in the digital advertising market. That probe is at a more advanced stage and a case could be brought as soon as this summer, some of the people said. Still, the U.S. inquiry into Apple’s App Store policies was described as serious by a person familiar with the case.The scrutiny shows that investigations of the country’s biggest tech firms overseen by Attorney General William Barr continue to grow a year after they began. The Justice Department was set to meet Friday with state attorneys general about plans to sue Google for antitrust violations, according to one of the people.App Store ReviewIn the Apple inquiry, the government’s lawyers have also asked developers about the App Store review process, during which Apple evaluates and either approves or rejects an app based on a series of guidelines, the people said.Sometimes developers approached the Justice Department, while at times the government made the initial contact, the people said. At least one major developer has had meetings with the department over the past 10 months, with conversations becoming more frequent in recent weeks. In the latest meetings with at least one major developer, the number of department lawyers also has increased, one of the people said.In early conversations with the Justice Department, at least one developer was asked if Apple lowering its 30% cut would solve its concerns, but the person said the problem is less the commission and more that Apple doesn’t allow an alternate payment system.The Justice Department has met with both high-profile and small developers that sell apps. “We’ve spoken with the DOJ regarding Apple and the App Store twice,” said David Heinemeier Hansson, the founder of software company Basecamp, which created the Hey email app, in an interview. “We shared our experience, relayed the experience of others, and put them in contact with a developer who didn’t want to go public with their story. I’m really glad that the DOJ is looking into this, because we need both legislative action, but also enforcement.”The government is also asking questions about the Google Play app marketplace, two of the people said. It isn’t clear whether scrutiny of Google Play is part of the Justice Department’s ongoing antitrust investigation into Google or whether the questions are being used to inform the Apple inquiry.Representatives from Google and the Justice Department declined to comment. Apple has said 84% of apps are free and pay nothing to Apple, but declined further comment.Aspects of the department’s discussions with developers about Apple have been previously reported by Reuters, MLex, and Politico.Apple has come under increasing fire in recent weeks. Earlier this month, the European Union opened an antitrust investigation of the iPhone maker. Regulators there are particularly concerned about how the company forces many developers to use its App Store payment service for subscriptions.Last week, Microsoft Corp. President Brad Smith said it’s time for antitrust regulators in the U.S. and Europe to discuss tactics that app stores use to take advantage of those who want to distribute their software, in a reference to Apple.The next day, Representative David Cicilline, a Rhode Island Democrat who is leading a House investigation of Apple and other tech giants, said in an interview with Bloomberg TV that Apple’s 30% cut of sales is “highway robbery.”Apple and Google are the dominant providers of app stores, the vast digital bazaars showcasing millions of games, productivity tools and other software available for download onto mobile devices. Globally, the two generated more than $83 billion in mobile-app spending by consumers in 2019, according to Sensor Tower data.That power means most developers must work with Apple and Google if they want to reach billions of smartphone users as customers. The companies take as much as 30% of app sales, creating highly profitable businesses -- but also a rising chorus of critics who see an exploitative duopoly.Unlike Apple, Google’s Android phones allow users to access multiple app stores in addition to Google Play, which may help insulate the company from an antitrust enforcement action over its app store practices. Apple has said it doesn’t allow multiple stores for security reasons.At issue for some developers is the way Apple forces its users to pay for subscriptions and upgrades within the App Store payment network. Many apps aren’t allowed to handle purchases outside of the App Store, ensuring Apple gets its cut of 15% to 30%.Apple makes an exception for video, music, book reading and some other services to allow users to log in without buying a subscription in the app. However, as part of the rule, the services can’t advertise in the app that users can buy the subscription online.Netflix Inc., for example, tells users they can’t subscribe to the service inside the app, but doesn’t explicitly tell customers how to pay for a subscription online, thus avoiding violating Apple’s rules. “We know it’s a hassle,” the app says. Apple says developers can promote other pricing outside of the App Store, as long as they don’t discourage purchasing within the App Store.App Store SubscriptionsOther services choose to use Apple’s payment system because it’s simpler for customers. But that can make the product more expensive. For example, the Soundcloud Go+ streaming music service costs $9.99 through its website, but $12.99 when bought through Apple’s App Store.Apple’s growth is at stake. If apps could sell subscriptions outside the App Store, developers could stop using Apple’s payment system, causing the company to lose revenue. Fees from App Store transactions are estimated to be one of the largest contributors to Apple’s services revenue, a business the company is trying hard to expand.Other developers, including Spotify Technology SA and Rakuten Inc., a Japanese online retailer, have complained about the App Store for being both the store operator and a competitor. For instance, when it offered sign-up subscriptions on the iPhone, Spotify had to give Apple its 30% share. Spotify argued that Apple Music, its top rival, doesn’t owe anyone a 30% fee.Apple accuses Spotify of wanting “all the benefits of a free app without being free” and has accused Spotify of seeking to “keep all the benefits of the App Store ecosystem -- including the substantial revenue that they draw from the App Store’s customers -- without making any contributions to that marketplace.”In recent days, Apple has loosened up some of its restrictions, appeasing developers. The company opened up its HomePod speaker to third-party music services, such as Spotify, and will allow users to set third-party email and web browser apps as their defaults on the next version of iOS.Basecamp last week had an update to its Hey email app rejected for not using the required in-app-purchase-system for subscriptions, but Apple reversed course after the developer added a free option.The company also said it would stop rejecting bug-fixing updates that violate App Store review guidelines, allowing developers to remedy such issues in a future release. It will also, for the first time, let developers challenge specific review guidelines.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Spotify is testing a new, more interactive ad format designed for podcasts: the in-app offer. This is done by way of a visual reminder within the Spotify app, which displays the sponsors on the podcast episode's page.
Spotify is expanding its podcast empire by signing exclusive deals with Kim Kardashian West & DC Comics, among others.