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Trading on "SPOT & # 39; on NYSE in the afternoon of Wednesday, July 25, 2018.
Last During the week, Spotify was upgraded by several badysts, all of whom predicted that the stock price would rise to more than $ 200 before the company's next earnings report. But not everyone is so bullish – especially when news of Soggier arrives.
Now, Pivotal Research Group has published a degradation of the performance of the title, citing the competition of Apple Music and other streaming options
. the time of writing, which is slightly lower than the estimates given when badysts have updated the stock to buy last week. So, what changed last week to move the stock from BUY to HOLD?
According to Pivotal Research, Spotify's growth has slowed significantly against active competitors and the churn of the company's subscribers. A significant number of these subscribers opt for premium content in favor of its free advertising-funded option, with an estimated 16% churn rate.
The research group is also interested in Google search traffic and found that the streaming platform are down. This could mean that Spotify reaches its marketing goals without Google's help, or that the platform is already approaching its saturation point. The worst possibility is perhaps that people are looking for something else like "Apple Music", even though a thorough SEO badysis might be needed before any conclusion.
Be that as it may, the company has also downgraded its projection of new submarines. It is down slightly from the initial estimate of 93 million.
The Pivotal badysts estimate seems to be in line with a new batch of projections for the company, with fierce period 2018, stating that SPOT will reach 92.5 million subscribers. Competition between music and video streaming services is considered a bigger deal. A new report on the composition of the premium subscription of Spotify revealed that only 55% of subscribers had the subscription fee of $ 9.99 per month, 24% of the family package and 12% of the subscription. 39, low cost student option. The proposed Spotify / Hulu bundle accounted for only 9% of Premium subscribers
+ So, why does Spotify lose Streaming War in the US?
For example, Apple Music achieved a subscriber growth rate of 5% in the United States, while SPOT growth was only 2% over the same period. However, the company outperformed Apple Music globally with 7% growth worldwide.
The churn rate of society is much higher than that of other music services. This includes the aforementioned estimate of 16% of US subscribers deciding to cancel their bonus plan. This rate is much higher than the overall churn rate reported. Analysts believe that the free advertising-funded option of the company is the main factor of churn, with former subscribers often preferring to lower their subscriptions to the ad-supported model.
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