Spotify Technology is the world’s largest music streaming company. You can use it to listen to just about any song ever recorded
A sleeping giant tech stock has awoken. It’s already handing out monster gains. And as I’ll show you today, it’s just getting warmed up.
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In fact, it won’t be long before this stock is mentioned in the same breath as hall-of-famers like Netflix (NFLX), Facebook (FB), and Google (GOOG). That’s right. The next great tech stock is growing up before our eyes.
I don’t say that lightly. Within a few years, this company should have over a half billion users and be worth hundreds of billions of dollars.
Spotify Technology SA (NYSE:SPOT) is the world’s largest music streaming company. You can use it to listen to just about any song ever recorded on your smartphone. Its library is more than 50 million songs deep, and features everything from Mozart to The Rolling Stones to every parent’s “favorite” song, Baby Shark.
Nearly 300 million people use Spotify Technology’s app. It’s one of the world’s most recognizable brands. Last year, the consulting firm Prophet ranked Spotify as America’s second “most relevant” brand. That’s ahead of Disney (DIS), Nike (NKE), and every other iconic American brand besides Apple (AAPL)!
And yet, Spotify was a “hated” stock until very recently. The chart below says it all.
You’re looking at Spotify Technology’s performance since it went public in April 2018. You can see that Spotify got off to a good start. It rallied 32% during its first four months as a publicly traded company. But then it ran out of steam. Over the next five months, it tumbled 46%.
It was valued at nearly $30 billion before its shares even started trading. When a company gets this big while it’s still private, it can lead to disaster on its first day of trading. We saw this happen with Facebook (FB). It fell 53% during its first 3 months as a publicly traded company.
The same thing happened with Snap (SNAP). It plummeted 56% in six months after its IPO. But sheer size wasn’t the only thing holding back Spotify. It didn’t have a traditional initial public offering (IPO).
