In a recent article on Yahoo Finance, stock market expert Jim Cramer discussed the current valuation and potential earnings power of Spotify Technology S.A. (SPOT). KeyBanc analysts have argued that the music streaming giant’s earnings power is being underrated in the market.
Cramer highlighted that Spotify has been facing some challenges in terms of competition from other streaming services and potential regulatory issues. However, he noted that the company has a strong brand presence and loyal customer base, which could help drive future earnings growth.
KeyBanc analysts believe that Spotify’s earnings power is not fully reflected in its current stock price, suggesting that there may be potential upside for investors. They pointed out that the company has a growing subscriber base and is expanding into new markets, which could lead to increased profitability in the long run.
Cramer agreed with KeyBanc’s assessment, stating that Spotify has a solid business model and strong potential for growth. He advised investors to consider adding the stock to their portfolios, especially if they believe in the long-term success of the music streaming industry.
Overall, the outlook for Spotify Technology S.A. appears positive, with analysts and experts predicting that the company’s earnings power will continue to grow in the future. Investors may want to keep an eye on Spotify’s performance in the coming months as it navigates through a competitive market and explores new opportunities for expansion.
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