🙉 Why We’re Avoiding Spotify

Vinyl’s more in favor [View in browser]( BROUGHT TO YOU BY: Proprietary Data Insights Top Internet Content & Information Stock Searches This Month Rank Name Searches #1 Alphabet 1,856 #2 Meta Platforms 1,192 #3 Criteo 506 #4 Pinterest 247 #5 Snap 201 #6 Spotify Technology 111 #ad [Your One-Stop Shop for FREE Stock Picks]( Brought to you by [Streetlight Confidential]( [Investors Find Mining Treasure]( Attention, investors looking for a recession-proof stock with massive potential … one under-the-radar company has developed a disruptive lithium extraction technology that cuts processing time by more than 75% … right in time to cash in on the global lithium megatrend. And with access to one of the richest lithium mines in South America, this company has the potential to generate more than a billion dollars a year. [Know More]( Streaming Why We’re Avoiding Spotify Key Takeaways: - There’s lots of Spotify hate right now. - The Juice currently wouldn’t touch that stock. - But we’ll buy some vinyl… There’s a reason Pandora, now part of Sirius XM (SIRI), never got completely off the ground: It was committed to music and radio. Audio streamers pay a ton in royalties. Spotify (SPOT), for example, spent roughly 75% of its 2022 revenue on royalties. So focusing on music and digital radio simply isn’t sustainable. Spotify stock is up more than 50% year to date… [Spotify] Source: Google Finance The Juice thinks investors love how Spotify is TikToking itself – moving away from its audio roots and rapidly shifting towards a model where creators take center stage with the emergence of video podcasts. Focusing on a business with greater profit potential and modern-day appeal. Everything Old Is New Again For as well as Spotify has started the year on Wall Street, it’s getting trashed in the popular media and on the streets. First, some users don’t like the redesign. They go to Spotify for music, not video podcasts. Second, what is a video podcast anyway? As Jimmy Fallon hilariously pointed out last week on The Tonight Show, he’s doing a video podcast! Spotify and the rest of Gen Z have taken one of the oldest concepts in television (the freaking talk or variety show) and slapped a new name on it (video podcast). Then they run around acting as if they discovered America. But taking something old and repackaging it as new is a trend over the last few years. We noticed billboards for the CBS show Magnum P.I. in LA the other day. Come to find out, the reboot of the 1980 Magnum P.I. is in the middle of its fifth season. Back to music, where, amid video podcasts and curated playlists, vinyl continues to crush it: [Revenues] Source: Recording Industry Association of America - For the first time since 1987, vinyl record sales surpassed CD sales. - That’s good for 16 consecutive years of growth. - Vinyl now accounts for 71% of all physical music revenue. - In 2022, listeners bought 41 million vinyl records and 33 million CDs. It’s incredible to think that pre-teens might think CD stands for certificate of deposit. But they’re likely more familiar with vinyl than compact discs. Big shoutout to Taylor Swift, who helps proliferate this trend. She released five cosmetically different vinyl versions of her latest album, Midnights, and eight unique iterations of her second-to-last album, Folklore. [Take Your Investments to the Next Level With The Alt]( We curate crypto, NFT, real estate, startup, art, commodities, hedge fund, and more alternative investment content that matters to you. [Click here to sign up]( The Bottom Line: To consider Spotify stock a core holding, we need to see stronger growth in advertising revenue. The company stated a goal of $20 billion in ad sales this year. Advertising revenue did grow 14% year over year in 2022, but it comprises only 14% of total revenue. So it’s not even the lack of profitability that bothers us. It’s the super high costs the company pays in virtually every area of its business, absent hypergrowth in its self-proclaimed promising areas. We’ll stick to the leaders in the broad space, such as the company that blows away almost all other stocks in terms of search interest in our proprietary sentiment indicator, Trackstar: Google parent company Alphabet (GOOG/GOOGL). Relative to Spotify, Alphabet is almost as sure of a bet as vinyl. mailto:?body=Article URL: https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D575755?utm_medium=ic-nl&utm_source=104153 News & Insights Freshly Squeezed - [Buy Low, Sell High. 2 Buy Rated Dividend Stocks Near Their Long Term Support]( - [Subscriber Exclusive: Free Report]( - [‘Rich Dad, Poor Dad’ Author Says You Should Invest in These Two Assets Amid Silicon Valley Bank’s Collapse]( - From The Spill: [Arches Made of Gold or Mold?]( mailto:?body=Article URL: https%3A%2F%2Finvestingchannel.com%2F%3Fp%3D575755?utm_medium=ic-nl&utm_source=104153 [We want to hear from you! Let us know your thoughts by clicking here]( [Link]( # Follow us on: [submit to reddit]( [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [allow us on your list]( Juice&email=TheJuice@news.investingchannel.com). Update your email preferences or unsubscribe [here](. 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