Is It Too Late to Buy Spotify Stock?
Shares of music streaming specialist Spotify Technology (NYSE: SPOT) have been on fire, and the stock is up 52% this year. However, some might argue that after this strong run, it's best to stay away from it.
The bears might point out that the longtime CEO and co-founder, Daniel Ek, will soon be stepping down from his role. Ek has led Spotify since its inception in 2006, earning strong returns along the way. Now, many investors and analysts wonder whether the company can perform nearly as well under new leadership.
The detractors would also highlight the company's valuation. The stock is trading at 52 times forward earnings, more than twice the average of 21.6 for the communication services industry. Are the bears right? Let's find out whether there is more upside left for Spotify.
Source Fool.com
