Spotify might be a bad investment stock

February 12, 2024
< 1 minute

Strategy | Business Models | Tech


Source: Spotify

Spotify might be a bad investment stock despite reaching 236 million premium subscribers.

Here are the key takeaways:

1/ Record growth in users and subscribers. Despite a year marked by operational challenges, Spotify achieved record growth, with a significant increase in both Premium subscribers and monthly active users. The company now has 236 million Premium subscribers, marking a 4 percent increase over the last quarter, and its total monthly active users have risen by 5 percent to 602 million.

2/ The business model. Despite the user and subscriber growth, Spotify reported a quarterly loss of €70 million, an improvement over the €270 million loss from the same quarter in the previous year. The net loss for the entire year stood at €532 million. The labels own the industry so from a strategy point of view Spotify needs a new source of growth.

3/ Podcasting. Spotify renews its deal with Joe Rogan to allow the distribution of his podcast on other platforms and incorporate audiobook content for Premium subscribers. These moves suggest Spotify is diversifying its content to enhance user engagement and value.

Source: The Verge


Discover posts:

Pursuit of the dream machine

Pursuit of the Dream machine

  Source: Microsoft (snapshot) Microsoft mentioned Artificial Intelligence (AI) up to 50 times during its results presentation in April. Microsoft Build 2023 event had 5 announcements and all were related to AI initiatives. 1/ Their biggest announcement was that Windows 11 is getting an AI Copilot. Finally, it’s worth buying (...)

Read more
Mark Zuckerberg's message to Meta employees

All tech companies are overstaffed

After several discussions with people from “the valley” (ie. mainly friends) I realised that all tech companies are overstaffed, being afraid of: 1. competition – by opening start-ups 2. competition – getting hired by somebody else This reminded me of Snap who’s main ad client for some years was…TikTok. Now (...)

Read more