Is Spotify Stock Poised to Crush the Market in 2023?
Nobody wanted to own Spotify (NYSE: SPOT) stock in 2022. After a huge run-up in late 2020 and early 2021, investors started to sour on the music streamer due to a lack of profitability. The company put up strong growth across all of its key performance metrics but failed to show gross margin expansion and positive operating profits. In a bear market where Wall Street is focused on what a company will earn over the next few quarters, this was a recipe for disaster, with shares falling 66% for the year.
But there are signs things will turn around in 2023. Already up 15% this year, is Spotify ready to make a comeback?
The majority of Spotify's growth over the past decade has come from its premium music streaming business. With an estimated 30%+ share of the global market, the company has won supremacy versus big tech giants like Apple, Amazon, and Alphabet, a highly impressive feat. Last quarter, premium music subscribers at Spotify hit 195 million, growing 13% year over year despite the company's decision to exit the Russian market.
Source Fool.com
