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.
Is streaming music provider Spotify Technology (NYSE:SPOT) the next Netflix, Inc. (NASDAQ:NFLX)? The answer is no — for now, according to Deutsche Bank.
The Analyst
Analyst Lloyd Walmsley initiated coverage of Spotify with a Hold rating and $155 price target.
The Thesis
Investors should hold a bullish stance on the music industry as a whole, but the bullish case for Spotify's stock is difficult to make right now, Walmsley said in the initiation note. Spotify doesn't boast any form of content differentiation, and a lack of visibility around long-term margins implies that a comparison to "Netflix 2.0" is unjustified, the analyst said. (See Walmsley's track record here.)
The case for being more positive on Spotify could be made in the future, but only if the company satisfies the following conditions, Walmsley said:
- Considerable market share growth.
- The introduction of new proprietary content that consumers value.
- Diversification away from the major music labels.
- A pullback in the stock's valuation.
Instead of Spotify, investors may want to consider Europe-listed Vivendi, which the analyst said is better positioned to benefit from the continued shift of music to streaming platforms.
Price Action
Spotify shares were up 1.19 percent at the time of publication Thursday morning.
Why YouTube Is Focused On Music Streaming
Spotify's First Earnings Report On Wall Street: The Sell-Side Reacts
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.
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