Spotify: Hail to the King, Baby! This Stock's Got More Boom Than My Shotgun!

Groovy Tunes Groovy Gains!

Alright you primitive screwheads listen up! Josh Brown and Sean Russo from Ritholtz Wealth Management those eggheads are talkin' 'bout Spotify (SPOT). They're calling it the Netflix of music and frankly who am I to argue? It's dominant defensive and growing faster than my ego after a successful alien invasion. This stock's been on their radar for 26 weeks and trust me that's longer than I usually spend in a strip club...usually. Time to kick ass and stream tunes!

Shake It Baby! Spotify's Shaking Up the Stock Market!

Out of 20 communication sector stocks on the New York Stock Exchange with a market cap over $10 billion (that's more zeros than I can count after a night out) Spotify's return is hotter than a Vegas blackjack table! Up over 34% year to date? Damn that's impressive. Second best performer in the past year up 108% only behind Reddit. Sounds like Spotify's got the juice. Time to paint the town red!

Netflix Jr.?

Apparently SPOT's been two steppin' with Netflix (NFLX). SPOT went public in April 2018 and has quadrupled since then. Netflix did the same way back when and then went on to return over 94,000%!. Netflix is way bigger than Spotify but still they're both averaging single digit drawdowns over the past 3 years even during that whole 2022 S&P 500 disaster. Spotify's defensive game is strong and that's what I call kicking ass and taking names.

Not Bad...

Spotify is 5% below all time highs while NFLX is at all time highs. There are only 40 other stocks that are at this point in the S & P 500. So what does this mean? Well not much but the underlying data at the moment is very healthy: engagement remains high retention is strong. So keep listening to your favorite artist! That's what I'm talkin' about.

Spotify's Got More Users Than You Got Bullets!

CEO Daniel Ek said some positive stuff about Spotify's performance: engagement's up retention's strong and their freemium model keeps users hooked even when times are tough. They blew past their own estimates with 615 million Monthly Active Users (MAUs) a 19% jump year over year! Premium subscribers? Up to 254 million a 14% increase! Revenue's up 20% too. Spotify's like a well oiled machine and I always appreciate a good machine...especially when it's making me money.

Dominance and Risk Management: Come Get Some!

Spotify owns 31.7% of the global music streaming market! It's crushing Tencent Music Apple Music and Amazon Music. As Spotify cranks up the ad revenue the cash is flowin' just like Netflix did back in the day. Now if you're a trader keep an eye on that $540 mark. If it dips below that the sellers might be back in control. But for long term investors stick with the long term uptrend. As long as that's intact Spotify's golden! Time to kick ass and chew bubblegum...and I'm all outta gum.