Spotify sees a multi-billion user opportunity and it's hard to argue with them. Spotify growth is more likely to accelerate in 2022 than decelerate or stay the same. Some investors, however, are making a mistake by treating this as a normal deceleration. There may have been no forecasted deceleration. If not for the pandemic, Spotify user growth likely would have been a little lower in 2020 and forecasted to be a little higher in 2021. In fact, since 2017, 21 medical cannabis stocks have soared by more than 1,000%.Īnd with medical cannabis sales expected to quintuple by 2026, investors still have lucrative opportunities. Investors who jumped on the boom in medical cannabis stocks have made surprising profits over the last 3 years. On the Q4 earnings call, one of the central themes was management promising that it would only forecast numbers that it was very confident the company could reach. When we consider the context of the projected deceleration, a disappointment turns into a possible buying opportunity. Most companies would be thrilled with that kind of growth, but it's not good enough for a company that needs to keep growing to cover its high content costs.īut the Spotify growth story isn't anywhere close to ending. The midpoints of those ranges would work out to growth rates of 15% and 21%, respectively. The culprit was 2021 guidance – the company expects paid subs to be 172-184 million and MAUs to be 407-427 million at the end of 2021.
Shares, however, are down more than 6% since the release.
Monthly active users (MAUs) were up 27% yoy to 345 million, at the top of the 340-345 million that was previously estimated. Paid subs increased 24% yoy to 155 million, while guidance called for 150-154 million. Spotify ( NYSE: SPOT) reported its year-end earnings last week, and grew its user base faster than the average expectations.
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