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 $79.45, up 0.04% from the previous day, and has decreased 64.7% in one year. It has underperformed other stocks in the Internet Content & Information industry by 0.11 percentage points. Spotify stock is currently +14.67% from its 52-week low of $69.29, and -67.86% from its 52-week high of $247.20.
As of Dec 1, 2022, there are 193.08M SPOT shares outstanding. The market cap of SPOT is $15.34B. In the last 24 hours, 1.02M 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. It's the best place to buy SPOT stock.
- 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
Based on our experience, eToro is the best brokerage. eToro gives you:
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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.
- Provide your personal details to start your new trading account.
- Submit your application by pressing the "Create Account" button.
Step 3: Put funds into your brokerage account
Watch the walkthrough below to see the process of depositing funds into your brokerage account.
Step 4: Evaluate Spotify stock
It's crucial to evaluate stocks prior to investing, so you can comprehend the risk and upside.
Spotify shares at a glance
Spotify Overview
WallStreetZen was designed to help average investors do better fundamental analysis in less time.
You can view all of the due diligence checks on SPOT's stock page.
How is SPOT stock valued?
Analysts use many financial metrics, analyses, models, and charts to gauge SPOT's intrinsic value.
Using relative valuations metrics:
- SPOT could be overvalued based on its P/B ratio of 7.01x, relative to Internet Content & Information industry P/B ratio of 3.91x
You can access additional valuation research on SPOT's stock here.
SPOT Financial Summary
Positive Health Checks:
- There are more short-term assets than short-term liabilities on the SPOT balance sheet.
- There are more short-term assets than long-term liabilities on the SPOT balance sheet.
Negative Health Checks:
- SPOT earnings of -$19.61M is not sufficient to cover its interest payments.
- SPOT profit margin has gone down from -1.3% to -1.8% in the past year.
- SPOT has a relatively high debt to equity ratio of 2.42.
- SPOT's operating cash flow of $230.39M allows it to safely service it's debt of $1.77B.
Is it a good time to buy Spotify stock, according to analysts?
Out of 21 sell side analysts who monitor SPOT, the consensus analyst rating on SPOT is a Buy
Should I buy or sell SPOT stock?
Based on 21 analysts offering ratings for Spotify Technology Sa.
Latest SPOT Analyst Ratings
Barton Crockett, a bottom 9% analyst from Rosenblatt maintains SPOT with a hold rating and lowers their SPOT price target from $112.00 to $87.00, on Nov 1, 2022.
Matthew Thornton, a bottom 12% analyst from Truist Securities maintains SPOT with a strong buy rating and lowers their SPOT price target from $125.00 to $115.00, on Oct 28, 2022.
Thornton lowered his price target on Spotify Technology S.A. following the release of the company's Q3 earnings report on 2022/10/25.
The company's "disappointing margin quarter" required that he update his model, the analyst said.
He lowered his FY 2022 and 2023 gross margin estimates, Thornton detailed.
For Q3 2022, Spotify reported:
- Loss per share of $0.99, which missed the Zacks Consensus Estimate of ($0.88) and, by 106%, Q3 2021's loss of $0.48.
- Revenue of $3.05B, which beat the Zacks Consensus Estimate by 0.39% and Q3 2021's $2.95B by 3.4%.
- Operating Expenses were up 65% Y/Y (51% constant currency), reflecting growth initiatives and the impact of acquisitions (Podsights, Findaway, Sonantic, Chartable, Whooshkaa and Heardle).
- 195M premium subscribers, up from Q3 2021's 172M.
- 456 MAUs, up from Q3 2021's 381M.
Management commented: "2022 continues to be an investment year for Spotify, as we build out the resources and infrastructure necessary to drive our multi-modal, multi-vertical strategy forward.
"We continue to re-evaluate our spending with an eye towards increasing return efficiency and enhancing productivity across the organization.
"We remain focused on gaining favorable Operating Expense leverage as we progress towards the intermediate-to-long-term targets we conveyed at our 2022 Investor Day."
Spotify shares have lost ~59.6% since the beginning of 2022 against the S&P 500's 20.3% decline.
Jason Bazinet, a bottom 5% analyst from Citigroup maintains SPOT with a strong buy rating and lowers their SPOT price target from $145.00 to $140.00, on Oct 27, 2022.
Benjamin Swinburne, a top 13% analyst from Morgan Stanley maintains SPOT with a strong buy rating and lowers their SPOT price target from $120.00 to $115.00, on Oct 26, 2022.
Mario Lu, a bottom 5% analyst from Barclays maintains SPOT with a strong buy rating and lowers their SPOT price target from $164.00 to $135.00, on Oct 26, 2022.
You can dive deeper into what analysts are saying on the Spotify stock forecast page.
SPOT Momentum
SPOT Revenue
Last year, SPOT revenue was $11.03B. In the last four year, SPOT's revenue has gone up by 18.8% per year. This was slower than the Internet Content & Information industry average of 25.5%.
Dive into SPOT's earnings and revenue performance here.
Who is buying/selling SPOT?
In the last year, executives and large shareholders at SPOT have not bought or sold any shares.
Research more about who owns SPOT stock here.
Can I get consistent income from SPOT stock?
No, Spotify doesn't provide an income stream by paying out dividends.
What do other traders have to say about SPOT?
One of the biggest reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to find out what other investors have to say.
Step 5: Place your SPOT buy order
There are two primary types of orders:
- Market order: A market order is an order to buy or sell a security at the best available price.
Market orders are usually fine. - Limit order: A limit order allows you 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 limit, use a limit order.
Hit the Open button and your broker will place your order.
If you require more info about buying 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 investment.
Create a watchlist to track the most important metrics related to your SPOT stock.
SPOT Feed
How to Buy Stock in Spotify
To summarize, here are the 6 steps for buying 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 option.
Get Started with eToro TodayIf you would like to get notifications regarding your new investment in Spotify, click the button below.
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