Spotify Is A Buy-The-Dip Opportunity, Here's Why

Spotify (SPOT) stock price dropped by 30% since its ATH. But I think the drop is not justified by business fundamentals. SPOT demonstrates robust MAU and premium subscriber growth, supported by geographic diversification and effective monetization initiatives. Gross margin reached 33%, operating leverage improved, and free cash flow turned positive to €3.2B LTM despite increased CAPEX. I expect double-digit total returns, so SPOT is a strong buy for me.

I've owned Spotify (SPOT) since the beginning of the Covid pandemic. And I'm very happy about its performance over the years. But during the last year, I've watched a struggling valuation.