![](https://cdn.benzinga.com/files/imagecache/2048x1536xUP/images/story/2022/06/23/spotify_android-g0c0c22577_1920.jpg)
- Citi analyst Jason B. Bazinet noted that Spotify Technology S.A. (NYSE:SPOT) has been building a broader audio platform that spans both Music and Podcasts for several years.
- He noted that these investments have not helped or hurt gross margins.
- However, with larger tailwinds from Marketplace and smaller headwinds from Podcasting, he expected gross margin expansion in 2023 and beyond.
- All of which should be bullish for the firm’s equity value.
- Bazinet reiterated a Buy on the stock.
- Last week, Wells Fargo upgraded its rating on the stock following its June 2022 investor day.
- Raymond James had also upgraded the stock. He saw the competitive landscape in streaming music was largely stable versus Netflix, Inc (NASDAQ:NFLX).
- Price Action: SPOT shares traded higher by 3.20% at $102.51 on the last check Thursday.