It seems like nobody wants to own Spotify (NYSE: SPOT) in 2022. The business is unprofitable and investors are worried about competition from large technology companies like YouTube, Apple, and Amazon. As of this writing, shares are down 68% year to date, while the S&P 500 is only down 19%.

This bearish performance should perk up the ears of contrarian-thinking investors trying to find value stocks for their portfolios. Spotify looks like a promising candidate with a durable business model, a large market opportunity, and a clear path to margin expansion. Should you buy Spotify before 2022 ends? Let's investigate.

It's sometimes hard to identify why a stock falls, but for Spotify, there's one clear reason the stock sold off this year: profit margins. In a vacuum, this would be a major concern for shareholders, but it can be easily explained given the company's recent investments in advertising and podcasts.

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Source Fool.com