Will Spotify Ever Turn a Profit?
There's no doubt that customers love music and podcast streaming service Spotify (NYSE: SPOT). The company just reported record user growth as the platform continues to enjoy strong uptake in international markets such as Southeast Asia, India, and Africa. That's in addition to steady growth in its more mature markets like North America and Western Europe.
However, even with global scale and hundreds of millions of users, this business still isn't profitable. In fact, its operating margin has actually gotten worse in recent quarters and sits at negative 7% over the trailing twelve months.
Bears point to these losses as evidence that Spotify's music streaming business model is flawed, while bulls think the company is reinvesting to tackle a gigantic market opportunity and will eventually turn profitable if it wants to. So who is right? Will Spotify ever turn a profit? Let's investigate.
Source Fool.com
