As you've probably heard, Spotify just went public via direct listing. It opened at $165.90 and closed at $149.01 according to WSJ, but this article claims outsize investor demand and a 13% increase over the "reference price".
Would you invest in Spotify? Why or why not?
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From the top of my head: Low margins, tough competition from Apple - I don't see how they could become profitable unless they remove free users. So no, I won't be investing in Spotify.
I agree. Their margins are extremely worrying. If they would be in a position to leverage their user base for better margins... Maybe. Just a really speculative stock in my opinion, as with most recent IPOs.
Tough competition from Apple is geography dependent. India is a big untapped market where a low % of the population have iOS devices to Apple Music won't be as much of a danger. Also a large portion of SE Asia
Hello! To tell the truth, i am not so good in investing, but i like Spotify, so yes, i would invest in it.
i LOVE spotify as a consumer. Easily the most used app on my phone besides text, but i'm not sure how they end up beating the record labels. The back catalog is so valuable in music and the labels own it all. Will make it tough to grow margins.
It’s a platform and their margins are improving. I haven’t looked into it enough but it’s not the turd I thought at first.
They are fighting back in content costs and doing decent so might have a shot.
I'll take a pass, though in my limited readings about the company they have a hard time figuring out how they will pay for and expand the rights to the music they do have.
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