Podcasts are one of the fastest growing industries on the planet. Spotify Has Made an Aggressive Push Into Podcasts And it isn’t just dominating the music market. We pounded the table on Spotify because it’s rapidly becoming something of a monopoly in the “audio industry.” It’s doing what Facebook did with social media, what Amazon AMZN did with online shopping, and what Google did with online advertising. It’s also “smart.” The more you use Spotify, the better its artificial intelligence gets at recommending songs and artists you’ll like.īut we didn’t recommend Spotify for any of these reasons. Spotify’s music streaming platform is second to none. Most people think Spotify is just a music streaming company. We called it our “#1 Failed IPO,” because Spotify was arguably the most misunderstood company on the planet. So, our team recommended Spotify last November. When “the crowd” throws in the towel on a stock, I often recommend swooping in to pick up shares on the cheap. Many investors gave up on the stock… And That Got Our Team Interested in Spotify Late Last YearĪs you may know, buying hated stocks is one of the best moneymaking strategies. And it spent the next two years treading water.

Without the support of a major bank, Spotify fell 10% on its first day of trading. It simply offered its shares directly to the public without any help from Wall Street. In other words, it didn’t hire Goldman Sachs (GS), JPMorgan (JPM), or any other bank to underwrite its IPO. It didn’t have a traditional initial public offering (IPO). But sheer size wasn’t the only thing holding back Spotify. It plummeted 56% in six months after its IPO. The same thing happened with Snap (SNAP). It fell 53% during its first 3 months as a publicly traded company. When a company gets this big while it’s still private, it can lead to disaster on its first day of trading. It was valued at nearly $30 billion before its shares even started trading. Spotify Was a GIANT Company When It Went Public

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