1 Green Flag for Spotify in 2022, and 1 Red Flag
Spotify (NYSE: SPOT) is having a tough 2022 -- or at least its stock is. Share prices are down over 67% from 52-week highs and likely fell because of a combination of the broad dip in technology stocks, average earnings reports, and little-to-no operating leverage showing up in its financials.
However, the global audio streaming platform is still growing its users and revenue, as opposed to many consumer internet stocks at the moment. With shares trading at a steep discount, there are some who think now might be a time to buy. Here's one green flag and one red flag for Spotify stock for the rest of 2022.
Spotify has been one of the most consistent growers in the consumer internet/technology sector. In the first quarter of 2022, the company grew its monthly active users (MAUs) 19% year over year to 422 million. Premium subscribers, or those that pay a monthly subscription for ad-free music listening, grew 15% year over year to 182 million. Compared to a business like Netflix, which has hit a wall for subscriber growth, Spotify is showing no signs of slowing down as its service gets more popular around the globe.
Source Fool.com
