It's not hard to conclude that the stock of Spotify Technology (NYSE: SPOT) is absolutely a buy. The company has already established itself as the global paid music-streaming leader, which suggests there is a lot of growth ahead of it, given music streaming adoption is still in its infancy. But the company has even larger ambitions than just music alone.
Spotify had 299 million total monthly active users (MAUs), including 138 million Premium subscribers, at the end of June. Those figures grew 29% and 27% year over year, respectively, during a period greatly impacted by the COVID-19 pandemic.
And the company's total addressable market is vast. There are over three billion payment-enabled smartphones in the territories Spotify operates in or plans to enter, and smartphone adoption increases over time. In addition, there is precedent for global digital platforms to eventually have user bases numbering in the billions. For example, Alphabet's YouTube has over two billion logged-in monthly users, and Facebook has over three billion monthly users across its platforms.
Source Fool.com