TSP Weekly Tech Stock Update—April 5, 2025
This Week: Nasdaq enters bear market, Spotify shares outperform, valuing YouTube, MNDY gets a new CRO, NOW buys Logik.ai, Evercore bullish on SNOW, Stephens likes CRWD/ZS, Daiwa upgrades AVGO & more.
Hello from Rob…
—Spotify (SPOT, $503.30) shares have been holding up relatively well compared to the overall market. While the stock has retreated nearly 23% from its record high $652.63 reached in the middle of February, it’s still up 12.5% YTD, sharply outperforming the Nasdaq Composite’s drop of 19.2%.
In Q4, Spotify’s total MAUs rose 12% year over year to 675 million. MAU net additions of 35 million represented the largest Q4 in company history and exceeded guidance by 10 million. The number of premium subscribers gained 11% to 263 million, with net additions of 11 million (3 million above the guide) matching Q4 2019’s record performance.
For Q1, Spotify is forecasting total MAUs of 678 million (3 million net new) and total premium subscribers of 265 million (2 million net new).
This week, UBS trimmed its Spotify price target to $690 from $720, but kept its ‘Buy’ rating, saying it sees numerous catalysts to power improved monetization and drive margin upside.
*Inside This Issue: 2 Stocks To Consider On Further Weakness
—Paid subscribers will receive the April 2025 PDF of Tech-Stock Prospector (TSP #278) via email on Tuesday, April 8.
—Paid subscribers have access to the TSP Market Overview and TSP Portfolio Updates sections inside this issue.