Spotify stock (NYSE:SPOT) has maintained strong momentum lately, reflecting an acceleration in user and revenue growth. Despite boasting over 600 million monthly active users (MAUs), Spotify keeps attracting paying subscribers and ad-supported members rapidly. The company is also recording a strong valuation multiple expansion, driving improved profitability. This trajectory could very well persist, moving forward. Yet, investors should be wary about the stock’s valuation, which appears too high. Thus, I am neutral on SPOT stock.
Q1 Results: Excellent User, Revenue Growth
Spotify’s Q1 numbers marked another period of excellent user and revenue growth. Despite already numbering more than 600 million users, Spotify keeps attracting new crowds to its platform at a rapid pace. In the meantime, the company enjoys strong pricing power, which, along with a larger number of users and strong advertising results, led to an acceleration in…
