Here’s your trading on Spotify ($SPOT) – May 1, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I thought I’d jump on this really quickly.
I’ll be talking about Spotify ( NYSE: SPOT ), and this is why; earnings are out of the way, no issue there. My suspicion is, this is probably when they were, though I don’t know for sure, it looks like April 23rd, that would be here. This thing got a big old pop on earnings and since that time it has fallen into this consolidation level here.
This is why I like the stock, first of all, it held up. It had this big massive pop, you never want to buy a stock that goes up like that. They will virtually always come back, not always but most of the time. The odds favor you not buying it and waiting. So maybe the waiting was the hardest part, Tom Petty taught us that.
It looks to me that maybe the waiting part is over. This is why I like this stock, it’s got a 97 RS rating on IBD’s market surge, which means that it’s outperforming 97 percent of all stocks in that universe. It’s holding the 50, it’s got a nice trend, and the pullback here has been on declining volume.
Today we got a nice hold here, it could pull back a little bit more. But this is the thing, this company has been losing its “asterisk” for years. They haven’t been making money on the earnings front, obviously revenue, but haven’t been making any money.
Well, that also holds true for 2023, where they lost $3.00. In 2024 though, is a different deal. The estimates are for a $4.92 profit That’s like about an $8.00 swing, from down three to almost up five. That’s a 263 percent return. Because of that, I really like the way this stock is setting up and I would want to be long this stock here.
So that’s my suggestion, I’m going to go ahead and put that in our Active Trade List.
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