Spotify Has Turned a Corner and Is Now a Great Buy
The optimistic case for Spotify Technology (NYSE: SPOT) has always been that it would create an advertising network like Facebook, except for your ears and not your eyes. The company can connect listeners and creators of music, podcasts, and audiobooks with highly targeted ads from advertisers around the world, generating revenue that can be shared with suppliers. Spotify might not have Facebook's upside in terms of scale, but the potential for a very profitable, sticky business is there.
Over the past year, Spotify's business has taken big steps to make that advertising network a reality. The foundation -- the music business -- has its own limits, but it could be a cash cow that funds the true growth engine in advertising.
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Source Fool.com
