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Spotify:Quarterly Results/2024 Q3: Difference between revisions
Spotify:Quarterly Results/2024 Q3 (view source)
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== Recent Analysts Opinions == | == Recent Analysts Opinions == | ||
=== Spotify to see further expansion in gross margin === | === Spotify to see further expansion in gross margin<ref name=":0">https://seekingalpha.com/news/4153129-tiktok-shuttering-its-music-service-a-clear-positive-for-spotify-deutsche-bank#hasComeFromMpArticle=false</ref> === | ||
* Overweight, $420->$470: Wells Fargo expects Spotify's gross margin to expand further. "Our analysis of incremental gross margins indicates further expansion ahead of consensus. We think Spotify's strategy+ evolving industry dynamics support the flow-through."<ref>https://www.cnbc.com/2024/10/28/monday-wall-street-analyst-calls-like-nvidia.html</ref> | * Overweight, $420->$470: Wells Fargo expects Spotify's gross margin to expand further. "Our analysis of incremental gross margins indicates further expansion ahead of consensus. We think Spotify's strategy+ evolving industry dynamics support the flow-through."<ref>https://www.cnbc.com/2024/10/28/monday-wall-street-analyst-calls-like-nvidia.html</ref> | ||
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* Outperform, $400: Wolfe Research said that they believe Spotify secretly increased prices Canada, New Zealand, and Ireland, effective October 2. They based their argument on pricing list at Spotify's website and a blog post in Canada. They expect this price increases to provide a tailwind in Q4 gross margin. The firm also expects Spotify's tiering strategy in these markets to be similar to that of U.S where cheaper “music-only” tiers are only available at the pre-price hike level<ref>https://www.tipranks.com/news/the-fly/wolfe-says-spotify-price-increases-should-provide-tailwind-to-q4-gross-margins</ref>. | * Outperform, $400: Wolfe Research said that they believe Spotify secretly increased prices Canada, New Zealand, and Ireland, effective October 2. They based their argument on pricing list at Spotify's website and a blog post in Canada. They expect this price increases to provide a tailwind in Q4 gross margin. The firm also expects Spotify's tiering strategy in these markets to be similar to that of U.S where cheaper “music-only” tiers are only available at the pre-price hike level<ref>https://www.tipranks.com/news/the-fly/wolfe-says-spotify-price-increases-should-provide-tailwind-to-q4-gross-margins</ref>. | ||
== Developments during the quarter == | |||
=== TikTok to shut down its music streaming business === | |||
* TikTok recently said it will shut down TikTok Music streaming business at the end of November 2024<ref>https://techcrunch.com/2024/09/24/bytedance-is-shutting-down-tiktok-music-globally/#:~:text=We%20will%20be%20closing%20TikTok,Music%20Business%20Development%2C%20TikTok%20said</ref>. | |||
* Deutsche Bank expects Spotify to absorb TikTok's 2-2.5 million subscribers<ref name=":0" />. | |||
* In Q4, they expect 1.3M paid subscriber net add due to the shutdown. | |||
== Insights == | == Insights == | ||