Is Spotify Technology Stock Recession-Proof?

Many investors likely own shares of Spotify Technology (NYSE: SPOT) because they're familiar with its service. Streaming is gaining real traction in the entertainment industry, so Spotify seems like a good bet. But with the stock price down 50% year to date, investors are probably wondering how resilient Spotify's business could be amid a slowing economy. 

The term "recession" is popping up a lot lately. It is often associated with a period of weakness in gross domestic production (GDP). This has gotten more attention recently after the U.S. posted its second consecutive quarter of GDP decline. When the economy is weak, it hits certain sectors, including one that Spotify relies on -- advertising. Its ad-supported streaming plan is used by more than half of monthly active users.    

But even with the economic headwinds, Spotify stock jumped following its Q2 earnings report in July. The music streamer posted solid growth in monthly active users and revenue. That suggests Spotify could be a more recession-resistant business than market participants realize.

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Source Fool.com