Summary
- Spotify Technology (SPOT) shows strong technical buy signals, with a 144.71% gain in the last year and a Trend Seeker buy signal.
- The company operates through Premium and Ad-Supported segments, offering extensive audio streaming services with significant revenue and earnings growth projections.
- Analysts provide mixed ratings, with price targets ranging from $189 to $512 and a consensus of $393, reflecting diverse opinions on the stock's valuation.
- Investors should note the stock's volatility and follow a disciplined investment strategy, considering personal risk tolerance and regular reevaluation of stop losses.
The Chart of the Day belongs to the Internet content company Spotify Technology (SPOT) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 9/17 the stock gained 11.82%.
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City, Luxembourg. Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
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Barchart Technical Indicators:
- 100% technical buy signals
- 141.67+ Weighted Alpha
- 144.71% gain in the last year
- 1.57 - 60 month Beta
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 7 new highs and up 11.71% in the last month
- Relative Strength Index 79.85%
- Technical support level at $364.66
- Recently traded at $380.41 with 50 day moving average of $333.66
Fundamental Factors:
- Market Cap $70.19 billion
- P/E 149.05
- Revenue expected to grow 24.30% this year and another 14.80% next year
- Earnings are estimated to increase 404.70% this year, an additional 39.10% next year and continue to compound at an annual rate of 100.36% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 22 strong buy, 6 buy, 8 hold and 2 sell opinions on the stock
- Analysts' price targets are between $189 and $512 with a consensus of $393
- Value Line gave the stock its average rating of 3 with price targets between $164 and $415 with a mid-point of $290 and comments:"The company’s increased focus on monetization and efficiency should drive profitability."
- CFRAs MarketScope rates the stock a 4 star buy with a price target of $425 and comments:"We believe SPOT is an attractive growth stock, with 15%-20% revenue growth and wider margins."
- MorningStar give the stock its below average rating of 2 with a Fair Value of $250 or 47% over valued
- 75,400 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
