Jul. 06, 2025 1:37 PM ETSpotify Technology S.A. (SPOT) StockSPOTYR Research4.51K FollowersSpotify's business model has proven itself, with strong user growth and operational leverage driving a 58% YTD stock surge, surpassing 9x returns from 2022 lows.Valuation is stretched, now at 70x forward earnings—well above peers like Netflix and Costco, despite less pricing power and margin strength.Q2 could disappoint: growth is slowing, margins are flattening, and competition plus FX headwinds threaten consensus expectations.Given lofty expectations and little room for error, I downgrade Spotify to 'Sell' and would only consider buying at a lower valuation.Avid Photographer. Travel the world to capture moments and beautiful photos. Sony Alpha UserSpotify (NYSE:SPOT) shares are up an astounding 58% year-to-date, approaching a 10x return from their 2022 trough.As the Swedish company emerges as the unquestionable leader in music in streaming, and the business model question was finally answered, it seems investors haveThis article was written byYR Research4.51K FollowersI aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portfolio targeted at avoiding losers and maximizing exposure to big winners. This means that often I'll rate great companies at a 'Hold' because their growth opportunity is below my threshold, or their downside risk is too high.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments