Spotify Shares: Price, Dividends and Performance
Spotify stock may be worth buying because of its future growth prospects and relatively low price.
How much can you make with Spotify stock?
Get up-to-date and precise information on Spotify stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Spotify: Our key take-aways
- Stock exchange: NYSE
- Stock index: S&P500
- Dividend 2021: $0
- Dividend forecast 2022: $0
- 1 year performance: -61.20%
Should I buy Spotify stock?
Spotify is not a yield stock as it does not pay a dividend but can be bought as part of a growth strategy.
Indeed, Spotify's share price has declined since it was first listed on the market, but analysts believe it could be on a longer-term uptrend.
Buying this stock today at a low price could therefore lead to long-term capital gains.
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How can I buy shares in Spotify ?
To buy Spotify on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Spotify to your stock portfolio.
How much are Spotify shares?
See price chart below to follow Spotify stock price in real time.
Why Spotify shares could go up:
Various elements of Spotify's analysis currently support an increase in the share price, including
- A strong brand name: Spotify has a strong and well-known brand name with an excellent image among the general public, especially thanks to a large library of tracks.
- An industry leader: Spotify is currently ahead of its main competitors in the streaming music market and can therefore be described as an industry leader.
- Flexible offerings: By implementing flexible offerings, Spotify has found a solution to piracy issues and is reaching more consumers.
- Growing industry: The ever-expanding music industry provides Spotify with many opportunities.
- Possible development of new segments: Spotify could also benefit from new revenue streams through the development of new segments such as video streaming.
- The Spotify Group is also developing a number of partnerships to promote its services, whether with artists, social networks or other companies.
Why Spotify shares could go down:
There are other, more pessimistic, reasons for the decline in Spotify's share price, including
- A service that is inaccessible to some consumers: since Spotify's services require an Internet connection, they do not reach all consumers.
- Unoriginal service: Spotify's service and subscription system is very similar to the competition. This makes it easy to copy.
- Strong competition: Competition in this industry is growing with many large players offering similar services.
- Disputes with some artists: In the past, Spotify has encountered some problems with artists regarding remuneration and royalty issues, which has tarnished its brand image.
- Insufficient revenue: Spotify currently makes very little profit and has high operating costs.
- Lack of dividends: Due to its lack of profit, Spotify does not pay dividends to its shareholders, which can be a deterrent to buying the stock.
Can I buy Spotify stock online?
Yes! You can buy Spotify shares online. For many buyers this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Spotify shares?
Selling Spotify shares can be done in a number of ways in Canada:
- With registered savings vehicles, you can sell Spotify shares you own by placing a sell order from your brokerage platfor.
- With a margin account, you can also short these stocks.
- Finally, you can also use derivatives such as options or CFDs to speculate on the decline of this stock.
What investment vehicles in Canada can hold Spotify stock?
Spotify shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
Of course, you can buy Spotify stock for cash by placing a buy order from your online brokerage platform for the number of shares you want to add to your portfolio.
Another way to invest in this stock is through an exchange-traded fund or ETF, or a mutual fund that includes this stock and others from the same sector.
Spotify share price history over 10 years:
Spotify dividends and payment dates
In 2021, Spotify paid no dividends to its shareholders.
The company has never paid a dividend to its shareholders. This is largely due to the company's lack of profits and its more growth-oriented strategy.
While Spotify has not announced any dividend in 2022, it is possible that the company will change its distribution policy in the years to come.
What is the dividend yield for Spotify over the last 10 years?
The yield on Spotify shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Good to know
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
Good to know
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Spotify stock:
A critical analysis of Spotify stock:
Fundamental analysis of Spotify stock shows strong bullish signals with the following:
- Rising earnings: Analysts' earnings growth expectations are high and analysts have repeatedly revised these expectations upward.
- High price target: Analysts' average price target is well off Spotify's current share price, suggesting strong appreciation of the stock.
- Positive views: Analysts who study the stock have positive views with Buy recommendations and have recently upgraded their views.
- Fragile margins: Spotify's current profitability before interest, taxes and depreciation shows low margins.
- High earnings multiples: With an expected P/E of 2466.65 for the current year and 110.94 for the next year, the company is trading on high earnings multiples.
- Diverging estimates: the estimates of the various analysts covering Spotify are not consistent, which reflects a lack of visibility of the business.
- No dividend: Spotify does not pay a dividend to shareholders.
A technical analysis of Spotify stock:
The technical analysis of Spotify stock, on the other hand, is sending out more negative signals with the following indicators:
- The RSI is currently at 34.782, which is a relatively strong sell signal.
- The short and medium-term stochastics are sending a strong sell signal while the longer term stochastic is sending an oversold signal.
- The MACD is negative at -7.31, which also sends a strong sell signal on this stock.
- The MA5, MA10, MA20 and MA50 simple and exponential moving averages as well as the MA100 and MA200 exponential moving averages are sending a sell signal and the MA100 and MA200 simple moving averages are sending a buy signal.
- The next support levels for this stock are at 126.31 and 101.21 and the next resistance levels are at 167.60 and 184.19.
Who is Spotify?
Spotify Technology SA is a Luxembourg-based company in the on-demand music business.
Specifically, the company provides digital music streaming services and allows its users to discover new releases, including the latest singles and albums, playlists including ready-made playlists composed by music fans or experts, and a catalog of over one million songs.
Spotify's business model is based on two account types:
- The Spotify Free account, which allows users to listen to music for free in shuffle mode and includes advertising. This account generates 12.5% of Spotify's revenue.
- The Spotify Premium account which allows you to enjoy all the features including ad-free playback, unlimited skips, offline listening and high quality audio. This account generates over 87.5% of the company's revenue.
The Spotify Group operates through various subsidiaries, including Spotify LTD, and is present in more than 20 countries around the world.
Who are Spotify’s competitors?
In the on-demand music business, Spotify is facing more and more strong opponents. Here are its main competitors at the moment:
- Apple: with its on-demand music service Apple Music, the American giant is a major competitor to Spotify and the current number two in this sector. The service is currently available in more than 160 countries around the world.
- Amazon: similarly, the Amazon Music service is an online music streaming platform and online music store. It markets music without digital rights management for the four major music labels.
- Tencent: Tencent's subsidiary Tencent Music Entertainment Group is a Chinese company specialized in the development of music streaming services for the Chinese market through several applications.
- Google: With YouTube Music, Google is also competing with Spotify. It is an audio streaming service platform developed by YouTube that offers a tailor-made interface for the service oriented towards music streaming.
- Deezer: Finally, the French platform for digital distribution of streaming music offers a similar model to Spotify with streaming via its website and mobile applications
Who are Spotify’s partners?
Of course, Spotify can also count on the support of its strategic allies. Recent partners include:
- Shopify: a partnership has been set up with this e-commerce solutions platform in order to allow artists to market their products to fans of the Spotify application.
- Microsoft: Microsoft has also partnered with Spotify by making the platform available on the Windows Store and Xbox One game console.
- Believe: Through its TuneCore platform, Believe has signed a deal with Spotify to test the new functionality of the Discovery Mode platform, a marketing tool created by Spotify.
- Delta Airlines: Spotify has also partnered with Delta Airlines to provide in-flight access to its catalog.
- Starbucks: A multi-year partnership has been established between the two companies to allow Spotify Premium users to enjoy free beverages and influence the music played at retail outlets.
- Facebook: Finally, Spotify has also partnered with Facebook to create the Boombox project, which will integrate the music streaming platform with the social network.
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