Spotify: The One Stock to Rule Them All... or at Least Stream Them All

Wake Up Spotify: It's More Than Just Music

Have you ever had a dream Neo that felt so real? What if I told you Spotify or SPOT as they call it in this reality is more than just tunes. For 26 weeks it's been on 'the list' a digital anomaly I've been watching and something is different. Out of 20 communication stocks trading on the New York Stock Exchange Spotify is The One to return big bucks. Up over 34% year to date! It's like dodging bullets only instead of bullets it's market volatility.

Deja Vu: The Netflix Connection

There is no spoon! I mean there is no denying the eerie similarities between Spotify and Netflix. Both exploded after going public in 2018 achieving a 4x return in their first 1,780 days. The Oracle of Silicon Valley then returns over 94,000%. Netflix is the older brother but Spotify is catching up. It's like watching history repeat itself but with fewer Blockbuster casualties and more digital streams. Single digit drawdowns of 9% and 6% over the past 3 years are amazing. Tell me about it.

The Glitch in the System: Earnings and Revenue

Sometimes the Matrix throws us a curveball. Recent earnings and revenue were 'lighter than the Street expected,' a fancy term for 'not as much shiny stuff.' But fear not CEO Daniel Ek much like Morpheus in the face of Agent Smith remains unshaken: 'The underlying data at the moment is very healthy: engagement remains high retention is strong.' It's all about perspective Neo. We have to think bigger.

Reality Check: The Numbers Don't Lie

Monthly Active Users (MAUs) exceeded guidance reaching 615 million. Premium Subscribers grew to 254 million. Total revenue jumped 20% year over year. These numbers are not just code; they are the future. Remember what Cypher said about ignorance being bliss? Well knowledge is power and these stats are a digital power up.

Dominance: Spotify Reigns Supreme

Spotify commands about 31.7% of the global music streaming market. Apple Music and Amazon trail far behind. The cash flow may finally be turning on mirroring the trajectory of Netflix in recent years. It's like the Architect planned it all along.

Choosing Your Pill: Risk Management

Here's where you decide. Take the blue pill and the story ends. You wake up in your bed and believe whatever you want to believe. Take the red pill you stay in Wonderland and I show you how deep the rabbit hole goes. A post earnings sell off of $540 is your pivot point. Long term uptrend stays intact. Which will you choose Neo?