There is no doubt about this: the music industry has moved to the streaming model. The biggest winner must be Spotics (Nyse: Spot)with more than 675 million Monthly active users (maus).
However, although the shares have increased more than 300% in the last three years, there is still time to buy this leader in the industry. Here’s why.
Growth stocks They often increase to new heights thanks to revenue abruptly, optimistic guidelines or large It increases at their customer base. However, cInsistent profitability is an obstacle that Many growth stocks never achieve.
Because of this, 2024 was such an important year for Spotify. The net income of the company 2024 increased to $ 1.2 billion, which is the first full year of profitability. For the context, the company lost almost $ 600 million in 2023.
All this is because the CEO Daniel EK moved the company’s strategy two years ago. He felt expenses and raised Prices, as long as you hold Spotify’s momentum of growth intact. Revenue jumped 34% compared to two years ago, Despite encouraging profitability.
There is a lesson for investors here: Include your wagon on stocks with strong guidance that is ready to make difficult decisions to improve the companies they lead.
Spotify is in a much stronger position to run the current market volatility now that it is profitable. Furthermore, long-term investors who believe-as a-da Spotify can continue to increase income, and an increase in profit can use a recent weakness of shares to accumulate shares.
Have you ever felt like you missed the ship in buying the most successful stocks? Then you will want to hear it.
On rare occasions, our expert team of analyst issues “Double” supplies Recommendation to companies they think will appear soon. If you are worried that you have already missed the opportunity to invest, now is the best time to buy before it is too late. And numbers speak for themselves:
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Nvidia: If you invested $ 1,000 when we doubled in 2009, you would have $ 315,521!*
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Apple: If you invested $ 1,000 when we doubled in 2008, You would have $ 40,476!*
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Netflix: If you invested $ 1,000 when we doubled in 2004, you would have $ 495,070!*
We are currently releasing “double down” warnings for three incredible companies, and maybe there will be no other chance like this.
*Stock Advisor returns from March 14, 2025
Jake Lerch has positions in Spotify technology. Motley Fool has positions and recommends Spotify technology. Motley Fool has disclosure rules.
Prediction: Spotify will be extinguished in the next 3 years. Here are 1 reasons why. originally published by Motley Fool
