Trading Insights: Spotify earnings on deck

Chart 1 Source: Tradingview April 25 2023 6:28 UTC

Market Talk

Spotify Technology S.A. provides music streaming services with nearly half a billion monthly subscribers.

Key bullets:

• $25,854,868,000 (billion) market capitalization
• Last quarter, Spotify posted strong performance with 20% increase in total monthly users
• 489,000,000 million monthly users
• Expected to report $3,356,000,000 (billion) in revenue for the last 3 months

Although free cash flow is positive, Spotify is expected to report a loss of -$0.935 cents per share.

• Higher labour costs and higher advertising costs keep earnings down
• Gross margins are 25%

Spotify’s outlook for 2023

According to the Spotify Q4 2022 update the company is projecting 500 million monthly subscribers for 2023, 207 million premium subscribers, and an operating loss of EUR 194 million.

Despite the forward-looking operating loss projection for 2023, the share price has increased +66% since the start of 2023.

Spotify technical commentary:

Current price $131.45 is in an uptrend (weekly chart) this can be technically supported by higher tops and higher bottoms on price (see chart 2), the fact that price is above its 13 and 26 week moving averages, as well as the rate of change 6 and 13 week indicators being above their respective signal lines. Upside prospects for a further price extension towards $158.39 can not be ruled out over the next 14-25 days, provided price can remain above the $120.54 support.

Chart 2 Source: Tradingview April 25 2023 6:54 UTC

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Upcoming Events:

Today’s economic calendar

• UK Public Sector net borrowing fell GBP 15.86 billion during February and fell a further 20.7 GBP billion in March.
• EUR / GBP appears to be in a bullish price cycle, current price faces resistance near 0.8866; upside above resistance spotted towards the 0.8880s; downside risk at 0.8720.

Source: Trading View April 25 2023 5:54 UTC

Earnings Season:

On deck today:

• Last day to place orders in front of earnings from Alphabet (Google), Microsoft Corp., Visa Inc.
• McDonald’s, Spotify, and GE earnings could set the tone for today’s US trading session

Source: US100 earnings calendar April 25 2025 5:42 UTC

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Today’s trading bullets

USD / CAD bullish conditions

Source: Tradingview April 25 2023 7:13 UTC

• USD / CAD: Current price 1.3562 above its 13 and 26 day moving averages (bullish). Rate of change (ROC) indicators 13 and 26 days above their respective signal lines indicate further upside prospects for a test of 1.3617. Downside risk seen below 1.3385.