Why I like Spotify stockSpotify Technology S.A.BATS:SPOTCapitalist_ZachI'm going to explain the reason I believe Spotify is a good investment, there's a few reasons. I'm basically using Spotify as a defensive anchor in my portfolio. First I'm going to explain the fundamentals, and the formula for this never changes. The discounted cash flow model, is a mathematical formula used to value companies based on the expected revenues they will generate over a number of years. I have made my own model for the stock, and compared it with others models. The number I have come up with is $700 per share, meaning that anything less than $700 per share I would consider the company undervalued. This is my margin of safety I will not pay more than the perceived intrinsic value for the company, but the opportunity last week to buy shares at $680 was attractive to me so I added to my position, quite a substantial chunk of my portfolio is on Spotify. Another reason I like the stock despite because I'm looking at the capital actually needed in the business. Whether that's a good investment for me depends on how much I paid for the business, in the end. Some great businesses operate on negative capital, subscribers pay in advance, there are no fixed assets to speak of, the receivables are not that much, and the inventory is nothing. Basically what I'm trying to say is that great consumer businesses need relatively small amounts of capital to run. I like this kind of businesses but so does the rest of the world and so they can become very competitive. I believe Spotify has a competitive advantage in their business model that's relatively defendable considering how long they've been around. From a technical standpoint the stock has been in a range for a couple months, a break out to one direction or the other is inevitable eventually. My price target for the short term, maybe the next 12 months is $800, I'm going to just hold the stock, with no stop loss, because this is not a trade, to me this is an investment. I've had the stock in my portfolio for a few months and have been pleasantly surprised by how well it balances with some of my other positions. Monitoring my portfolio daily, I really enjoy just watching the markets and listening to some Spotify.