Is Spotify Stock a Buy?
Spotify (NYSE: SPOT) shares have been on an epic run since bottoming in March amid the market panic over COVID-19. The shares closed at just $118.18 on March 23 but now change hands at a whopping $270 per share only about three months later. Here's why the stock is still a buy.
Many potential investors have thought of music streaming as an undifferentiated commodity business, because the streaming services have access to essentially the same music catalog. If that were true, then the streaming services would all be doing equally well. But that's not true -- Spotify dominates the paid streaming music business with over 130 million premium subscribers globally as of the end of March.
The No. 2 paid streaming music service, Apple Music, has been notoriously silent on its subscriber progress since mid-2019, when it said it had about 60 million subscribers. Up to that point, Apple had been disclosing the number of Apple Music subscribers every few months or so.
Source Fool.com
