The Grid of the Future Needs Wires That Can Carry More Power
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 08 2024
0mins
Should l Buy SPOT?
Source: Bloomberg
Innovative Cable Technology: TS Conductor has developed a new type of power cable that is lighter, stronger, and can carry up to three times more electricity than traditional cables, utilizing advanced materials like carbon fiber and trapezoidal aluminum designs.
Market Demand and Expansion: The demand for reconductoring is increasing due to challenges in building new transmission lines, with TS Conductor already deploying thousands of miles of its technology since 2021 and planning further expansion in manufacturing both in the US and internationally.
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Analyst Views on SPOT
Wall Street analysts forecast SPOT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPOT is 750.79 USD with a low forecast of 525.00 USD and a high forecast of 900.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 422.610
Low
525.00
Averages
750.79
High
900.00
Current: 422.610
Low
525.00
Averages
750.79
High
900.00
About SPOT
Spotify Technology SA a Luxembourg-based company, which offers digital music-streaming services. The Company enables users to discover new releases, which includes the latest singles and albums; playlists, which includes ready-made playlists put together by music fans and experts, and over millions of songs so that users can play their favorites, discover new tracks and build a personalized collection. Its users can either select Spotify Free, which includes only shuffle play or Spotify Premium, which encompasses a range of features, such as shuffle play, advertisement free, unlimited skips, listen offline, play any track and audio. The Company operates through a number of subsidiaries, including Spotify LTD and is present in over 20 countries. Its service offers a music listening experience without commercial breaks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- User Growth and Engagement: User growth and engagement remain robust, bolstered by expansions into video and audiobooks, particularly following the rollout of music videos for premium users in the U.S. and Canada, enhancing user retention and competitive positioning.
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- Earnings Expectations: Spotify is expected to report Q4 earnings of $3.30 per share on revenues of $5.37 billion, reflecting a year-over-year growth of approximately 28%, indicating strong performance and profitability in the audio streaming market.
- User Growth and Engagement: User growth and engagement remain robust, bolstered by expansions into video and audiobooks, particularly following the rollout of music videos for premium users in the U.S. and Canada, enhancing user retention and competitive positioning.
- Strategic Restructuring: With founder Daniel Ek as Executive Chairman, Spotify is repositioning itself for future challenges, emphasizing margins, market expansion, and a diversified content ecosystem to support long-term growth.
- Analyst Ratings: Despite competitive pressures, analysts at Seeking Alpha maintain a bullish outlook on Spotify, suggesting that the stock's valuation reflects expectations of sustained growth and margin expansion, with multiple upward revisions in EPS and revenue estimates over the past three months.
See More
Spotify Q1 Earnings Preview: Analysts Expect $2.85 EPS
- Earnings Release Announcement: Spotify is set to release its Q1 earnings on February 10 before the market opens, with analysts projecting earnings per share of $2.85, a significant increase from $1.76 in the same quarter last year, indicating improved profitability.
- Revenue Growth Expectations: According to Benzinga Pro, Spotify's expected quarterly revenue is $4.52 billion, up from $4.24 billion a year ago, reflecting the company's ongoing growth potential in the music streaming market.
- Subscription Price Increase: Spotify announced a price hike for its Premium subscription in the U.S., Estonia, and Latvia from $11.99 to $12.99 per month, effective in February billing cycles, aimed at boosting revenue and addressing cost pressures.
- Stock Price Movement: Despite the upcoming earnings report, Spotify's shares fell 1.8% to close at $414.84 on Monday, indicating cautious market sentiment ahead of the earnings announcement, which may affect investor confidence.
See More
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- Revenue Growth Expectation: Analysts anticipate Spotify's Q4 revenue will increase by 6.6% to $4.9 billion, reflecting the company's ongoing efforts in product innovation and market expansion, despite a nearly 30% decline in stock price this year.
- Stock Performance Issues: Despite steady revenue growth, Spotify's stock has fallen approximately 46% from its peak on June 26 and about 29% in the new year, indicating market concerns over its long-term performance, with investors hoping the upcoming earnings report will reverse this trend.
- Optimistic Analyst Ratings: Wall Street maintains a bullish stance on Spotify, with 34 out of 41 analysts recommending 'Buy' or higher, and an average price target of $732.72 implying over 76% upside potential, reflecting confidence in the company's future profitability.
- New Management Takeover: Spotify co-founder Daniel Ek stepped down as CEO on January 1, handing over the reins to newly appointed co-CEOs Gustav Söderström and Alex Norström, prompting analysts to closely monitor how the new management will drive strategic improvements and performance enhancements.
See More
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- Ford Production Outlook: Ford's high-margin trucks are limited in discounting due to tighter dealer inventory, with analysts focusing on how quickly F-series production normalizes, which is expected to impact performance in 2026, reflecting market expectations for its supply chain recovery.
- Coca-Cola Growth Expectations: Coca-Cola is projected to achieve mid-single-digit organic revenue growth in Q4, primarily driven by pricing power rather than volume, demonstrating effective cost control that may positively impact its margins.
- Retail Sales Data: US retail sales are forecasted to slow to 0.4%, with core retail sales steady at 0.4%, and this data will help investors gauge whether consumer spending shows any meaningful signs of strength, reflecting the fragility of economic recovery.
See More
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- Strong Tech Stock Recovery: The portfolio's Magnificent Seven stocks, including Alphabet, Microsoft, Nvidia, and Meta, rebounded after recent declines, suggesting renewed confidence in the tech sector that could drive future investment inflows.
- Rising Capital Expenditure Expectations: Bank of America's updated capex tracker revealed a 14% quarter-over-quarter and 66% year-over-year increase in global hyperscale capex to $148 billion in Q4, exceeding expectations by $7 billion, reflecting optimism for future investments.
- Upcoming Earnings Reports: On Semiconductor and Vornado Realty Trust are set to release earnings after the bell, with the market closely watching these reports to assess industry health, while several companies, including Coca-Cola and Spotify, will report before Tuesday's open, further influencing market sentiment.
See More
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- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
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