How to Buy Spotify Stock
Spotify Technology Sa
Spotify Technology S. A. , together with its subsidiaries, provides audio streaming services in the United States, the United Kingdom, Luxembourg, and internationally.
Spotify stock last closed at $281.23, down 7.28% from the previous day, and has increased 113.94% in one year. It has overperformed other stocks in the Internet Content & Information industry by 0.82 percentage points. Spotify stock is currently +118.57% from its 52-week low of $128.67, and -11.92% from its 52-week high of $319.30.
As of Apr 24, 2024, there are 199.05M SPOT shares outstanding. The market cap of SPOT is $55.98B. In the last 24 hours, 8.23M SPOT shares were traded.
How to Buy Spotify Stock
Not sure how to invest in Spotify stock? Here's how.
- Choose where to buy Spotify stock: You need to pick a stock brokerage, but don't worry - we've tested dozens of online stock brokerages and apps to help you determine where to buy Spotify stock.
- Create a brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've selected.
- Put funds into your brokerage account: Choose your payment method and add your information.
- Evaluate Spotify stock: The Spotify ticker symbol is SPOT. Is Spotify stock a good investment? Should you buy shares of SPOT? How do SPOT's underlying business fundamentals look? Do top analysts think Spotify is a good buy? Why has SPOT's stock price moved recently? (Hint: Our stock market research tools can help you evaluate if SPOT is a good stock to buy).
- Place your SPOT buy order: Decide if you will purchase SPOT shares at the current market price or use a limit order to buy SPOT shares at a particular price.
- Get key alerts regarding your investment in SPOT: Create a watchlist to key updates about your investment in Spotify shares.
Step 1: Choose where to buy Spotify stock
You need a brokerage account in order to access the NYSE market and buy SPOT shares.
Our favorite brokerage: eToro
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Get $10 towards your purchase of shares by opening an account with eToro now.
Open eToro AccountStep 2: Create a brokerage account
Now that you've chosen the best brokerage, it's time to fill out some personal information so you are able to buy SPOT stock today.
How to Create a New Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Provide your personal details to start your new trading account.
- Submit your application by pressing the "Create Account" button. Get started with eToro today
Step 3: Put funds into your brokerage account
Now that you have created your account on stock apps to use, your next step is to transfer the money for your investment:
Watch the tutorial below for more details depositing money into your new brokerage account.
Step 4: Evaluate Spotify stock
After you have chosen the best place to buy Spotify stock, it's important to analyze their stock prior to buying, so you can understand the risk and upside.
Spotify quick stats
Fundamentals of Spotify
WallStreetZen was built to help part-time investors perform more in-depth fundamental analysis in minutes instead of hours.
You can see all of the due diligence checks on SPOT's stock page.
How is SPOT stock valued?
You can use many financial metrics, analyses, models, and charts to gauge SPOT's fair value.
Using relative valuations methods:
- SPOT may be overvalued based on its P/B ratio of 15.73x, relative to Internet Content & Information industry P/B ratio of 6.52x
You can access additional valuation research on SPOT's stock here.
SPOT Financial Health Summary
Positive Health Checks:
- There are more short-term assets than long-term liabilities on the SPOT balance sheet.
- There are more short-term assets than short-term liabilities on the SPOT balance sheet.
- SPOT's operating cash flow of $894.62M allows it to safely service it's debt of $1.90B.
- SPOT profit margin has gone up from -6.5% to -0.8% in the past year.
Negative Health Checks:
- SPOT earnings of $76.34M is not sufficient to cover its interest payments.
- SPOT has a relatively high debt to equity ratio of 1.74.
- Total SPOT debt is higher than 5 years ago, relative to shareholder equity.
Is Spotify stock a Buy, Hold, or Sell, according to Wall Street analysts?
Out of 26 sell side analysts who give ratings on SPOT, the consensus analyst rating on SPOT is a Strong Buy
It's important to keep in mind that analyst ratings are not stock recommendations, nor are they financial advice.
Most Recent SPOT Analyst Upgrades/Downgrades
Kannan Venkateshwar, a top 25% analyst from Barclays maintains SPOT with a strong buy rating and raises their SPOT price target from $335.00 to $350.00, on Apr 24, 2024.
Barclays's Kannan Venkateshwar raised their price target on Spotify (NYSE: SPOT) by 4.5% from $335 to $350 on 2024/04/24. The analyst maintained their Strong Buy rating on the stock.
Venkateshwar's price target hike followed an assessment of Spotify's 2024/04/23-dated Q1 2024 earnings report and participation in the earnings call.
Based on the company's quarter and management's comments about potential growth levers, the analyst believes that revenue and margins will continue to increase in the medium term.
Earnings Report
For Q1 2024, Spotify reported:
- EPS of $1.05 (€0.97), which beat the Zacks Consensus Estimate of $0.63 but missed, by 15.3%, Q1 2023’s $1.24.
- Revenue of $3.95B (€3.64B), which beat the Zacks Consensus Estimate by 2.05% and, by 21.2%, Q1 2023’s $3.26B.
- Gross margin of 27.6%.
- Operating income of €168M.
- 615M total MAUs (Monthly Active Users), up 19% Y/Y.
- 239M total premium subscribers, up 14% Y/Y.
For Q2 2024, management guided:
- Revenue of €3.8B.
- Gross margin of 28.1%.
- Operating income of €250M.
- 631M total MAUs.
- 245M total premium subscribers.
Founder & CEO Daniel Ek commented in the earnings call: “At Spotify, we don’t rely on a single growth strategy but rather adjust our focus based on what the business demands.
“For instance, two years ago, we really concentrated on user growth. Then last year, we restructured our costs, and now we are focused on accelerating revenue while improving our bottom line.
“Next year, our focus may return to top-of-the-funnel user growth but in the near term, monetization remains our top priority.
“Bottom line – we are really good at pivoting our attention when it makes sense. When I say pivot, I mean making tweaks that will get us to an even better outcome.
“And because of our ability to do this, I have no doubt that we will recapture top-of-the-funnel growth over time as it becomes more of a focus area for the team.”
Doug Anmuth, a top 1% analyst from JP Morgan maintains SPOT with a strong buy rating and raises their SPOT price target from $320.00 to $365.00, on Apr 24, 2024.
Matt Farrell, a top 23% analyst from Piper Sandler reiterates SPOT with a hold rating and raises their SPOT price target from $300.00 to $320.00, on Apr 24, 2024.
Eric Sheridan, a top 1% analyst from Goldman Sachs maintains SPOT with a hold rating and raises their SPOT price target from $277.00 to $317.00, on Apr 24, 2024.
Alan Gould, a bottom 9% analyst from Loop Capital maintains SPOT with a hold rating and raises their SPOT price target from $250.00 to $300.00, on Apr 24, 2024.
You can dig deeper into what analysts are forecasting on the Spotify stock forecast page.
SPOT Momentum
SPOT Growth Metrics
Last year, SPOT revenue was $14.88B. Over the last 5 year, SPOT's revenue has increased by 18.65% per year. This was slower than the Internet Content & Information industry average of 19.56%.
Find out more about SPOT's earnings and revenue performance here.
What are SPOT insiders up to?
In the last 12 months, executives and large shareholders at SPOT have not bought or sold any shares.
Research more about who owns SPOT stock here.
Does SPOT stock generate passive income?
No, Spotify doesn't provide an income stream by paying out dividends.
SPOT Social Trading Data
One of the primary reasons eToro is our highest-rated brokerage is because of its social trading community.
Click below to find out what other traders have to say.
Step 5: Place your SPOT buy order
You have two main types of orders:
- Market order: A market order is an order to buy or sell a stock at the best price on the market.
Market orders are usually fine for most investors. - Limit order: A limit order is an order to buy or sell a security at a specific price (or better).
If you want to ensure you're buying or selling at a given price, place a limit order.
Press the Open button and your broker will execute the order.
If you require more help investing in stocks on eToro, watch the how to video below:
Step 6: Get key alerts regarding your investment in SPOT
Now that you own some SPOT stock, you'll want to keep up with your new investment.
Create a watchlist to monitor your SPOT stock.
SPOT Feed
How to Buy Stock in Spotify
To reiterate, here are the 6 steps to buy Spotify stock:
- Choose where to buy Spotify stock
- Create a brokerage account
- Put funds into your brokerage account
- Evaluate Spotify stock
- Place your SPOT buy order
- Get key alerts regarding your investment in SPOT
If you need a place to buy stocks, eToro is our recommended venue.
Get Started with eToro TodayIf you would like to get the latest scoop on your new investment in Spotify, click the button below.
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