#7 - Spotify (NYSE:SPOT)
Spotify (NYSE: SPOT) continues to dominate the global market for subscription music streaming. However, in the first half of 2021, its market share is shrinking slightly as more competitors enter the space. One concern among industry observers is that Spotify is starting to lose the younger Gen-Z consumers to other streaming music platforms.
However, Spotify has been pivoting to more reliance on podcasts. In fact, the company has been investing a tremendous amount of money (up to $ 1billion) to buy content. The company is playing the long game. But there’s reason to believe it will work and if it does, SPOT stock will look like a bargain at its current price.
Speaking of the stock, SPOT stock climbed over 150% from its pandemic low until the end of 2021. But the stock has gotten whacked since then and is down 20% for the year. However, analysts are forecasting the stock to recover all those gains in the next 12 months.
About Spotify Technology
Spotify Technology SA, 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.
Read More - Current Price
- $475.04
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 23 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $421.69 (11.2% Downside)
I’m a cynic so I believe that this anti-trust talk is much ado about nothing. Politicians on both sides of the aisle are already beginning to position themselves for the 2022 mid-term elections. To some people that would suggest that Congress will want to do something.
However, since mid-term elections have historically been better for the minority party, I would expect that the Democrats will have much more urgency to get a bill passed that shows they’re doing something.
But what will that look like? I think it will mostly niggle at the edges. There may be some rules that make it harder for these companies to make acquisitions. They may make a token effort to trim the “walled gardens” that allow these companies to thrive. But I believe any substantive regulation will be left for another day.
That means that tech stocks will be a solid bet not just for the rest of 2021 but well into 2022 as well. Consider these stocks and let us know if you have other stocks that you believe should make this list in the future.
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