Should Spotify Worry About the Challenge From Amazon Music?
Spotify (NYSE: SPOT) is currently one of the top companies in the music streaming industry, and despite its leading market share, it continues to make headway. During the third quarter, Spotify's monthly active users (MAUs) were 248 million, up 7% sequentially and 30% compared to the year-ago period. The company ended the quarter with 113 million Premium subscribers, a 31% year-over-year increase.
Furthermore, Spotify recorded total revenue of $1.7 billion, representing a 28% year-over-year growth, while its $54 million net income was significantly better than the $6 million net loss recorded during the prior-year quarter.
Overall, Spotify performed well last year, and its shares climbed by 31.8% during the year. This compares favorably to the S&P 500, which rose by 28.9% last year. Not all is well in Spotify-land, however. The company does have several competitors to contend with, and it looks as if Amazon (NASDAQ: AMZN) is increasingly becoming one of its top competitors.
Source Fool.com
