Why I Just Bought More Spotify Stock
There aren't too many subscription products out there that are likely to be used by billions of people in the future. And there definitely aren't many of them that are trading for less than $50 billion of equity market value right now.
But there is one that I know of: Spotify (NYSE: SPOT). I've long been bullish on Spotify due to its huge global growth opportunity and the several underappreciated levers it has to increase its profit margins over time. Here are three reasons I just bought more shares.
On the company's third-quarter earnings conference call, CEO Daniel Ek articulated his vision for the "two-sided marketplace." This is the company's strategy to make money from not only consumers (one side of the marketplace) but also from artists and their teams, the other side of the marketplace.
Source Fool.com
