Summary
Spotify Technology (SPOT) shows strong technical indicators with 100% buy signals, a 179.48% gain in the last year, and consistent price appreciation.
The stock has a Trend Seeker buy signal since 1/22, resulting in a 25.98% gain, and is above its 20, 50, and 100-day moving averages.
Analysts have mixed opinions with a consensus price target of $507, while fundamental factors show expected revenue and earnings growth this year and next.
Despite positive momentum, the stock is volatile; diversification and moving stop loss strategies are recommended for potential investors.
The Chart of the Day belongs to audio streaming service Spotify Technology (SPOT) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 1/22 the stock gained 25.98%.
SPOT Price vs Daily Moving Averages:
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City, Luxembourg.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 179.16+ Weighted Alpha
- 179.48% gain in the last year
- Trend Seeker buy signal
- 1.63 - 60 month Beta
- Above its 20, 50 and 100 day moving averages
- 13 new highs and up 17.14% in the last month
- Relative Strength Index 86.92%
- Technical support level at $594.09
- Recently traded at $621.77 with 50 day moving average of $485.49
Fundamental Factors:
- Market Cap $109 billion
- P/E 149.06
- Revenue expected to grow 14.98% this year and another 13.44% next year
- Earnings estimated to increase 69.81% this year and an additional 23.98% next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts issued 17 strong buy, 8 buy, 10 hold and 2 sell opinions on the stock
- Their price targets between $231 and $726 with a consensus of $507 for an 18% loss
- Value Line rates the stock average with a price target of $452 for a 20% loss and comments:" The long-term view is promising from an operational standpoint. On the downside, even though we raised our Target Price Range, recent price strength has limited appreciation potential out to late decade."
- CFRAs MarketScope rate the stock a buy with a price target of $675 and comments:" We expect SPOT to sustain operating profit based on scale efficiencies and reductions in content delivery costs, partly offset by higher development costs."
- MorningStar thinks the stock is 22% over valued and comments:" Spotify materially exceeded its guidance as it posted record fourth-quarter subscriber additions and revenue growth remained strong (17% year over year). More critically, operating income and free cash flow continued to surge as the firm ended its first year of net profitability."
- There are 639 investors monitoring the stock on Motley Fool and 533 think it will out perform the S&P 500 and 106 predict it will under perform the S&P 500
- 78,050 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
I really enjoy and solicit your feedback. If you find Chart of the Day helpful please click the envelope in the upper right corner and leave a comment. Constructive criticism is also appreciated
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
