seekingalpha.com
Spotify Just Posted Its Best Year Ever; We Think It Should Get Better
Spotify (SPOT) is rated Buy, driven by a dramatic profitability turnaround and robust operating leverage since FY24. SPOT's success hinges on pricing power, disciplined cost management, and favorable content cost leverage, with premium gross margins rising to 33.7% in FY25. AI-driven features and proprietary ad stack upgrades are expected to fuel future growth and margin expansion, despite near-term ad revenue softness.
