NewTradingView.com – Investing and Stock News
Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Investing

Mark Mahaney wants you to be ‘long’ Spotify: find out why

by September 10, 2022
written by September 10, 2022

Spotify Technology SA (NYSE: SPOT) is still struggling to meaningfully recover from the low it made in May. But that, as per Mark Mahaney (Managing Director at Evercore ISI) is an opportunity to buy.

Gross margins to expand in 2023

Mahaney has been bullish on Spotify since 2021. While his optimism on this name hasn’t pan out so far, he remains convinced the next year will be a different story on gross margin expansion. Speaking with CNBC’s Sara Eisen this evening, he said:

They’re finally reaching scale, starting to get a lot of advertising revenue and moving off the heavy investment phase. So, in 2023, you get gross margin expansion for the first time. You want to be long Spotify before that happens.

In July, Spotify reported a 14% year-on-year increase in its quarterly premium subscribers, adding to Mahaney’s list of reasons for owning this tech stock.

Earlier this week, Daniel Ek – the Founder and CEO of Spotify urged the European Commission to accelerate the antitrust case against Apple Inc.

Spotify can withstand a recession

“Streaming” has hardly seen any love in recent months as ad-spend tends to be one of the first expenditures that’s cut in a recession. Still, Mahaney says Spotify is somewhat hedged against an economic downturn.

Unlike video streaming services, people only sign up for one music streaming service. So, in a recession, you may cut video streaming from four to three or two, but you’re probably going to keep that music streaming at $10 a month.

He also dubs it “reasonably” protected against a recession since advertising makes up a relatively smaller 15% of the total revenue for Spotify.

Mahaney’s constructive view is in line with Wall Street that also recommends buying Spotify stock down about 55% for the year at present.

The post Mark Mahaney wants you to be ‘long’ Spotify: find out why appeared first on Invezz.

0 comment
0
FacebookTwitterPinterestEmail

previous post
Morgan Stanley just upgraded this large cap biotech stock
next post
Lessons From Biden’s Disinformation Board Debacle

You may also like

US court dismisses claim Coinbase sold unregistered securities

February 2, 2023

Ray Dalio now sees cash as ‘relatively attractive’

February 2, 2023

Peter Schiff: “Disinflation is transitory”

February 2, 2023

3 main takeaways from Chair Powell

February 2, 2023

Analyst recommends ‘caution’ as Meta stock pops 20%...

February 1, 2023

Fed just ruled out rate cuts this year:...

February 1, 2023

Jim Cramer likes only one of these two...

February 1, 2023

Analyst: buy Vodafone stock despite a slight hit...

February 1, 2023

Peloton stock shot up 20% on Wednesday: find...

February 1, 2023

IOTA promotes sustainable energy consumption with EnergieKnip

February 1, 2023
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Popular Posts

  • 1

    My Trigger to Enter $VAPR

  • 2

    Multi-Millionaire Trader Explains Why You Should Start Trading With A Small Account {VIDEO}

  • 3

    Scaling Up Tips From A 24-Year Old Millionaire Trader {VIDEO}

  • 4

    Pay Attention to These Stocks

  • 5

    New ‘Hunger Winter’ Looms as Europe Prepares to Shiver

Recent Posts

  • US court dismisses claim Coinbase sold unregistered securities

    February 2, 2023
  • Ray Dalio now sees cash as ‘relatively attractive’

    February 2, 2023
  • Should the Fed Stop Tightening?

    February 2, 2023
  • Peter Schiff: “Disinflation is transitory”

    February 2, 2023
  • The FOMC: To Pause or Not to Pause?

    February 2, 2023

Categories

  • Economy (604)
  • Editor's Pick (232)
  • Investing (1,605)
  • Stock (9)
  • About Us
  • Email Whitelisting
  • Terms and Conditions
  • Privacy Policy
  • Contacts

Disclaimer: NewTradingView.com, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2023 NewTradingView.com All Rights Reserved.


Back To Top
NewTradingView.com – Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick