I think Spotify's shares did badly in 2021, because it doesn't seem to be getting closer to its long-term gross profit margin target in the 30%-40% range. Spotify's Share Price Performance In 2022 Year-to-date Spotify also underperformed the S&P 500 significantly during these time periods. SPOT's shares fell by -24.8% in full-year 2021 and dropped by a further -25% in this year thus far. Spotify's share price performance was poor in 2021, and things didn't get better in early-2022. As such, I think that SPOT's shares are currently undervalued and deserving of a Buy rating. This should be the major re-rating catalyst for SPOT's shares, which are only trading at a low single digit forward Enterprise Value-to-Revenue multiple.

I expect Spotify to achieve the lower end of the company's long-term gross profit margin goal (30%) in five years' time. My prior article for SPOT was written on January 18, 2022, which focused on the company's 'competition with TikTok and Resso.' I will spend time on Spotify's historical stock price performance, Q1 2022 guidance and its medium-term five-year outlook in my latest article. I continue to rate Spotify Technology S.A. Sony Alpha User/iStock Editorial via Getty Images Elevator Pitch Travel the world to capture moments and beautiful photos.

Spotify stock split date