Spotify Technology S.A. is in the technology sector and is part of the online media industry. The company CEO is Daniel Ek. Spotify Technology SA offers music streaming subscription service. Its platform includes Monthly active users and Premium Subscribers. It operates and manages business in two reportable segments Premium and Ad-Supported.



Previous Intraday Performance:

The SPOT shares had a previous change of -2.27% which opened at 144.24 and closed at 140.24. It moved to an intraday high of 144.55 and a low of 140.01.

SeekingAlpha:  FT: Spotify will raise prices if it must pay App Store fee

Historical Performance:

Over the last five trading days, SPOT shares returned 0.04% and in the past 30 trading days it returned 3.54%. Over three months, it changed 9.25%. In one year it has changed -5.89% and within that year its 52-week high was 198.99 and its 52-week low was 103.29. SPOT stock is 35.77% above its 52 Week Low.

Our calculations result in a 200 day moving average of 156.42 and a 50 day moving average of 136.06. Right now, SPOT stock is trading -10.35% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

SeekingAlpha:  EU’s Vestager: We’ll take Spotify’s Apple complaint seriously

Liquidity:

The company has a market cap of $25.4b with 180.9m shares outstanding and a float of 180.9m shares. Trading volume was 1,183,763 shares and has experienced an average volume of 1,975,256 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.

Earnings:

The last annual reported EPS for Spotify Technology S.A. was -0.59 which ended on 31st of December 2018. Based on 9 analyst estimates, the consensus EPS for the next quarter is -0.24.

Below was the last reported quarterly earnings per share:
12-31-2018:  0.41
09-30-2018:  0.27
06-30-2018:  -0.61
03-31-2018:  -1.01

Base on our calculations, the intrinsic value per share is 214.84, which means it might be undervalued and has a margin of safety of 34.72%

The next earnings report will be: 03-21-2019



The long-term trend of the EPS is an important number as it indicates the present value of Spotify Technology S.A.; the EPS growth rate, as it is usually called, is typically displayed as a percentage, which at this time is hard to estimate, but revenue growth has been 21.50% over the last twelve months.

Indicators Also to Watch:

Based on the latest filings, there is 59.50% of institutional ownership. Short-interest was 3,939,605, which was 2.18% of shares outstanding. The short-interest ratio or days-to-cover ratio was 1.89. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 2.02

SeekingAlpha:  EU’s Vestager: We’ll take Spotify’s Apple complaint seriously

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is -6.66%, return on assets is -2.06%, profit margin is -1.68%, price-to-sales is 4.20 and price-to-book is 10.98.

Company Score Card:

Results are out of six:
 4  : Growth Expectations Result
 6  : Financial Safety Result
 0  : Past Performance Result
 1  : Valuation Result
 0  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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