Investing in Spotify
But even though it is a globally recognized company, the question remains: Is it a good idea to buy Spotify shares? Find out for yourself and learn below what are the potential advantages and disadvantages of investing in Spotify.
What is Spotify?
Spotify is a Swedish company created in 2008. Its main function is to offer an exclusive music service where a wide variety of tracks in different genres from record companies and artists with independent labels are transmitted.
This application has more than 286 million active users in its paid and free versions. Spotify has gained visibility and popularity among its followers in a large number of countries in the Americas, Europe, Asia, New Zealand and Australia.
Within the platform you can not only listen to music by genre, album, artist, playlist or label, you also have access to podcasts, videos and streaming of the artists of the moment.
In addition, you have a basic version that is completely free and where you can listen to music without any problem, and a premium version where you can improve your profile and enjoy new features.
But how is it that Spotify and its actions are among the best? Because the company generates revenue through different Marketing strategies, which allows it to reach a high reach of users and, therefore, more subscriptions are generated on the platform.
Also, Spotify also wins with its free version, since it broadcasts various commercials while the person is listening to their favorite artist. This makes Spotify Nasdaq one of the most stable companies for 2020 and of course, an excellent choice for investment!
Although Spotify has only been in the stock market for a short time, we assure you that it already has a large number of investors who bet on Spotify with every share. And yes, we know that its competition is quite wide, but it is still a very good option to invest in Spotify in the medium or long term.
In addition, Spotify has a stock price that has reached $342.00 announced by NYSE. To top it off, the Spotify shares have a 22.82 high and a 6.95% upside of 6.95% indicating that it has been held in 2020 and has risen in value.
So, are you convinced to buy Spotify stocks? If the answer is no, here are the advantages and disadvantages.
Buying Spotify shares: Advantages
- Excellent positioning. Thanks to the great reception it has received from the public, Spotify is recognized as the No. 1 application for streaming music. This gives investors much more confidence when buying Spotify shares.
- Easy to use and connect. Compared to other applications, Spotify delights by being easy to manage and available for computers, smartphones, tablets and other devices through its website.
- More users, more revenue! Its free version reaches many more users without additional costs, which is a great advantage for those who use it. In turn, Spotify is remunerated through the advertisements that regularly appear in the application.
- Digital Marketing. If there is one thing we have no doubt about, it is that Spotify implements all marketing strategies to have a greater impact on its audience. It is for this reason that makes use of social networks to promote its functions and utilities within the app.
- Years of experience. When you invest in Spotify, you can be sure that you are buying the shares of a company with experience in the field of music, advertising services and technology.
Buying Spotify shares: Disadvantages
- Low remuneration for artists. Spotify’s free service can have its disadvantages and one of them is the low remuneration given to artists, which can lead to lower profitability.
- Music library. In some cases Spotify’s music library has brought dissatisfaction to users for being so limited and not getting what they want to listen to.
- High level of competition. As we mentioned at the beginning, Spotify’s competition is quite high, since large companies such as Apple, Amazon and even Google could affect its popularity and decrease Spotify’s share price.
How to buy Spotify shares
Alright, now that we know the advantages and disadvantages of Spotify it’s time to know how to buy Spotify shares? The truth is that it’s quite simple, and it doesn’t matter if you’re a beginner buyer, here we’ll explain everything step by step. Let’s get to it!
Before we start, we need to find a good broker to buy Spotify share price. In case you didn’t know, a broker is the platform that will facilitate the transaction between us and Spotify. If you don’t know of one, we show you the best and most professional ones to do this kind of business:
- eToro: a very easy to use portal that takes only 5 minutes to register and complete the transaction.
- Plus500: a completely safe and reliable broker where you are shown statistics and can keep track of the stocks you want to buy or sell.
Now that we know which brokers can be used to buy shares in Spotify, follow these simple steps:
- Choose the broker of your choice.
- Register by completing the form and verify your account.
- After logging in, locate the search bar and type “Spotify”.
- You will see the value of Spotify shares in real time and an option box in which you must enter the number of shares you want to buy.
- Then click on invert and that’s it.
If you still have doubts about how to invest in Spotify, we leave you with the following recommendations:
- Be well informed about Spotify and stay up to date on their latest moves and innovations.
- Check statistics and always check how much a Spotify share is worth to know when to buy and when to sell.
- Always take a company’s downturns as an advantage and buy shares at that time.
- Check with investors about the results they have had buying shares in Spotify.