Section 1: Company Fundamentals

1.1 Summary Table

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

The chart below shows that over the previous five years, both revenue and gross profit have been increasing, with an exceptional five-year CAGR for revenue of 28.48% and a five-year CAGR for a gross profit of 47.15%. The fact that the gross profit CAGR is larger than the revenue CAGR suggests that the cost of revenues has been managed effectively, and this is further confirmed by the upward increasing gross margin trend line. This upward trend in revenues is because of increased subscribers which led to increased premium and Ad-supported revenue over the five years.

Section 2: Spotify Technology SA (“HOLD” at the current market price of USD 112.00 as of July 28, 2022, at 07:20 AM PDT)

2.1 Company Details

2.2 Valuation and Technical Guidance

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance. 

Note 2: The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.

Disclaimer

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