Oppenheimer Analyst Rerates Spotify Citing Bearish Sentiment, Highlights Strong MAUs and Positive Podcasting Growth
Portfolio Pulse from Anusuya Lahiri
Oppenheimer analyst Jed Kelly maintained a Perform rating on Spotify Technology S.A. (NYSE:SPOT), citing bearish sentiment but highlighting strong Monthly Active Users (MAUs) and positive podcasting growth. Spotify's 2Q22 ARPU was 2% below Street due to product/markets mix-shift, but announced global pricing increases. The analyst sees potential growth despite challenges from large platforms like TikTok. Podcasting growth reaccelerated to 30%+ and is tracking towards break-even. Kelly increased 4QE ARPU by 7% Q/Q, and FY24E revenue by 1%. SPOT shares traded lower by 3.04% at $144.59 on the last check Thursday.
July 27, 2023 | 6:08 pm
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NEGATIVE IMPACT
Despite bearish sentiment, Spotify's strong MAUs and positive podcasting growth are highlighted. The company's 2Q22 ARPU was 2% below Street expectations, but global pricing increases were announced. Shares traded lower by 3.04%.
The bearish sentiment from the analyst, coupled with the stock trading lower, suggests a negative short-term impact. However, the strong MAUs and positive podcasting growth, along with the announced global pricing increases, could potentially offset this in the longer term.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100