Spotify (SPOT) expects to touch revenue of US$100 billion in a decade

2 min read | June 08, 2022 02:31 PM PDT | By Mridul Gogoi

Image source: © Prim91 | Megapixl.com

Spotify shed 53% of its market value in 2022

The company lost 53% of its market value this year. However, its shares gained 5% on Wednesday. The S&P 500’s communication services index shed 24% in 2022, including Spotify and other social network companies.

However, the CEO has a positive outlook on Spotify’s growth in the coming years.

"We are performing much better than you probably suspect, roughly 28.5% (margins), which is a significant progress in reaching our 30% to 35% long-term goal," Daniel Ek told investors during the meet.

The company said that it has allocated more than US$1 billion to podcasting and expects revenue to grow materially this year. It earned US$215 million in revenue from its podcast division last year.

According to Ek, the podcast business can generate 40% to 50% margins, while the audio business could generate 40% margins. However, he did not clarify the time frame to reach those targets.

Bottom line:

Spotify has a market cap of US$22.44 billion. It has a forward P/E for one year of -185.47, and its earnings per share (EPS) is US$-0.71. Its 52-week highest and lowest stock prices were US$305.60 and US$89.03, respectively. Its trading volume was 2,408,335 on June 7.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.