This Number Could Mean Multibagger Returns for Spotify Investors
Shares of Spotify Technology (NYSE: SPOT) are down 53% over the last year. That underperformance is despite an acceleration in revenue growth last year. An increase from premium subscriptions and ad-supported revenue contributed to strong top-line growth, but concerns over slowing growth in monthly active users have weighed on the stock's performance.
But there's one number that says the stock could be a bargain at these levels. Per-capita spending on music remains well below its peak in 1999, but the comeback in vinyl records suggest the interest in music is stronger than ever.
As the leading brand in audio streaming, Spotify can capitalize on growing demand for music to periodically raise subscription prices. This is one tool at its disposal to keep revenue growing for a long time and create compounding shareholder returns.
Source Fool.com
