Overhead Pressure Signals Trouble for Spotify Stock

Spotify Technology S.A. (NYSE: SPOT) is the company behind the most popular audio streaming platform in the world, with presence in 183 markets. The platform offers a subscription service with more than 82 million tracks and over 4 million podcast titles. It currently has 433 million monthly active users and 188 million premium subscribers. At last glance, Spotify stock is trading down 4.2% at $75.08.

SPOT is down by about 66% year-over-year and has shed 67% year-to-date. However, the stock has grown by 8% over the past month, pushing it 13% up from its early November record low of $69.28. Still, Spotify stock is struggling, with overhead pressure looming at the 50-day moving average. 

Nonetheless, Spotify holds a strong balance sheet with $3.67 billion in cash and $1.86 billion in total debt, helping to balance out some of the short-term risks for the business. As a result, SPOT can be considered one of the more attractive high risk, high growth plays available on the market at the moment.

2022 is nearly in the books, and for many investors turning the page to a new year can’t come soon enough. Will 2023 be better for stocks? If history is a guide it will be.

In the 12 months following mid-term elections (the elections held in the middle of a president’s four-year term), stocks have performed well. This is typically because mid-term elections tend not to go well for the party that sits in the White House.

The reasons for that trend are not something that’s in our wheelhouse. We’re just looking at what it means for stocks. And what it suggests is that next year the markets could see a strong recovery…at some point. But as is frequently the case, you have to be in the right stocks.  

That’s the focus of this special presentation. We’re taking a look at seven stocks that have a strong case to be made for growth in the coming year. And some of these stocks are offering a good entry point for investors right now.

View the Stocks Here

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