Spotify Technology SA
SPOT: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$251.00 | Gzn | Fpqyjnrn |
Spotify Earnings: Impressive Listener Growth Indicates Network Effect, but Monetization Lags
We are maintaining our $170 fair value estimate, no-moat rating, and Very High Morningstar Uncertainty Rating for Spotify. The stock is down 14% in intraday trading in reaction to second-quarter results and trading more than 15% below our fair value estimate. Nevertheless, we recommend new investors wait for a slightly wider margin of safety.