27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Streaming music provider Spotify Technology SA (NYSE:SPOT) is scheduled to report its first-ever earnings as a public company after Wednesday's market close.
The Analyst
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Stifel's John Egbert maintains a Buy rating on Spotify with an unchanged $180 price target.
The Thesis
Spotify is modeling to report the following metrics, Egbert said in a Tuesday note:
- 75 million premium subscribers.
- Total monthly active users of 169.3 million.
- Total revenue of $1.36 billion in the U.S. dollar equivalent.
- $317.6 million in gross profit.
- A 23.2-percent gross profit margin.
- An operating loss of $87.5 million.
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Investors should pay attention to whether the following questions are answered during the earnings call, Egbert said:
- How will adding increased functionality for free users impact conversion to a paid subscription?
- Does increased functionality for free users hurt or help gross margins given the ad-supported model?
- Were there any notable subscriber trends per region in the quarter?
- What impact to Spotify's business is being felt from increased competition?
- Will bi-annual free trials grow in-line with gross subscriber additions?
- When will average revenue per user headwinds ease?
- What is the impact to Spotify's business from the acquisition of Loudr?
- What is management's opinion on the Music Modernization Act?
- Any commentary on Spotify's rumored in-car listening device?
Price Action
Spotify shares were up about 1 percent at the time of publication Tuesday.
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Photo courtesy of Spotify.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.