Spotify Technology SA
NYSE:SPOT

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Spotify Technology SA
NYSE:SPOT
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Price: 458.46 USD -0.53% Market Closed
Market Cap: 92.1B USD
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Net Margin
Spotify Technology SA

4.6%
Current
-2%
Average
0.3%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
4.6%
=
Net Income
701m
/
Revenue
15.1B

Net Margin Across Competitors

Country LU
Market Cap 92.7B USD
Net Margin
5%
Country US
Market Cap 390.3B USD
Net Margin
21%
Country US
Market Cap 206B USD
Net Margin
5%
Country NL
Market Cap 44.9B EUR
Net Margin
13%
Country US
Market Cap 30.6B USD
Net Margin
1%
Country US
Market Cap 25.6B USD
Net Margin
-28%
Country US
Market Cap 24.4B USD
Net Margin
13%
Country CN
Market Cap 19.8B USD
Net Margin
22%
Country FR
Market Cap 16.5B EUR
Net Margin
22%
Country US
Market Cap 16B USD
Net Margin
7%
Country US
Market Cap 14.6B USD
Net Margin
-8%
No Stocks Found

Spotify Technology SA
Glance View

Market Cap
92.6B USD
Industry
Media
Economic Moat
Narrow

Spotify Technology S.A., founded by Daniel Ek and Martin Lorentzon in 2006, emerged as a revolutionary force in the music streaming industry, transforming how people consume music. The company, headquartered in Sweden, turned the music world on its axis with its user-friendly platform that allows seamless access to a vast library of music tracks and podcasts from across the globe. Spotify operates on a freemium model—users can opt for an ad-supported free service or pay a subscription fee for an enhanced, ad-free experience with additional features like offline listening. This dual-tier service has been central to Spotify's strategy, drawing in massive user numbers while compelling enough of them to convert to paying subscribers, thus forming a stable revenue stream. The heart of Spotify's business model lies in its relationships with record labels and music rights holders, agreements that enable it to host a monumental catalog of songs. Monetization is primarily driven through subscriptions and advertising. Premium subscriptions not only provide a steady revenue channel but also buffer against the variability of ad-generated income. On the advertising front, Spotify sells digital ad space in various formats, such as audio, video, and display ads within its free service. By leveraging data analytics and user personalization, Spotify enhances ad targeting capabilities, offering value to advertisers through highly targeted campaigns, and, in turn, securing its position as a leading player in the music streaming ecosystem.

SPOT Intrinsic Value
222.74 USD
Overvaluation 51%
Intrinsic Value
Price

See Also

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What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
4.6%
=
Net Income
701m
/
Revenue
15.1B
What is the Net Margin of Spotify Technology SA?

Based on Spotify Technology SA's most recent financial statements, the company has Net Margin of 4.6%.