Spotify: Weaker Advertising Trends Are Becoming A Concern (Downgrade)
Spotify is experiencing slower revenue growth as ad-supported users increase but monetization struggles. The stock has been downgraded to 'Neutral' due to concerns about high valuation multiples and slowing growth. The company's gross margin and profitability compared to peers like Netflix are also under scrutiny.
- ▪Spotify's revenue growth is decelerating as ad-supported users outpace Premium subscribers.
- ▪The stock has been downgraded to 'Neutral' amid concerns over high valuation multiples.
- ▪The company's gross margin is in the mid-30s, raising questions about long-term profitability.
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