Spotify Technology (SPOT-N)

Over 70% of teens use this service, more twice as much as #2.

Shares plunged 14% after their quarter yesterday, but was up 107% YTD before that report. Puzzling. Climbing subscribers number haven't translated into revenue: more monthly active users, premium subscribers and ad-supported users. 14% revenue growth cs. 27% rise in monthly users. They're struggling to monetize users. Revenue per users are declining. That's why they raised prices last week for the first time. Also, expenses were much higher than expected while free cash flow of 9 million Euros was much lower than the street's 72 million. They're spending like drunken sailors. They missed numbers while expectations were too high. However, they gave excellent guidance for the current quarter. Analysts actually raised price targets. Overall, these are fixable problems, turning users into earnings namely and he likes the stock. Until they do around, there are better stocks to buy like Netflix.

Like MSFT, it just delivered a winning quarter, but investors today were tripping over themselves to find a reason for selling it (down 12%). The market can get it wrong. Sure, SPOT had a little slowdown in monthly users, but the CEO is solid.

Again, the dominance is there. But the valuation is off the charts. Under the same umbrella as Zoom and Shopify.

It's in line with the FANGs. Had a wonderful run and is considered the future of music consumption. If there's a weak market, though, this faces huge downside risk. Be cautious.

A newly public company. He sees no visibility to earnings or cash flow here. Streaming is a big opportunity though, and he likes Apple music, which he'd rather buy--Apple has positive earnings and stability. Spotify isn't stable, at least not yet.

This whole space is very interesting. The content providers besides the supper big stars are not making a ton of money on these platforms. Longer term he thinks a cooperative model is ripe.