Shares of $SPOT have been declining in recent months and their performance over the past year isn't very strong. In my opinion the stock is still expensive and this is just a correction that will calm the price down a bit.
Do you think $SPOT shares are currently cheap, or was the valuation previously too high and are now just returning to a fair value?
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huge support from 534$-508$, if it holds i will be buying
I missed my chance to buy $SPOT cheaply at Christmas 2022. I still regret it a bit. I like the company—I use the app daily on my phone and in the car—but I removed it from my watchlist last year. Drops of around 25% from the ATH are fairly common, so buying opportunities do show up. We’re a bit lower now, but given the recent mess with the data (content) leak, it could have been worse.
I agree with you — the stock has only gone up over the past 3 years, and the P/E was at one point even above 90, which seems really high for this company to me. The comparison with $NFLX is interesting; their developments look like twins, since the sector is the same.
Spotify is an interesting stock to me overall. I use an iPhone and Apple Music. So why not buy Apple shares instead, where Spotify is a direct competitor (which is another topic) and you also get a lot more besides :)
By P/E it's expensive compared to the sector average, but historically Spotify hasn't been cheaper than it is now relative to its fundamentals.