Spotify Has a Big Opportunity Right Now
The impact of COVID-19 on Spotify (NYSE: SPOT) has been relatively muted. The music-streaming leader did see a decrease in listening hours, as consumers spent less time commuting to work and going to the gym -- prime listening hours -- but active accounts weren't really impacted.
"[W]hen we saw consumption starting to decline we would have assumed that MAUs and Paid Subscribers would be negatively impacted, but that wasn't the case," CEO Daniel Ek wrote in the company's April 29 letter to shareholders. "In fact, both new and reactivated MAUs grew substantially even during lockdown periods in major markets."
On the earnings call, Ek provided some insight into why active accounts remained relatively unaffected by the impact of the COVID-19 pandemic, and he was generally optimistic about the business going forward.
Source Fool.com
