Early last week, shares of Spotify Technology SPOT, +4.86% took a hit when Guggenheim analyst Michael Morris cut the stock to sell, on the belief that “the market is now pricing shares for blue-sky growth, which has made the risk-reward unattractive.”
But that “blue-sky growth” is still in play, according to RiskHedge trader Justin Spittler, who claims Spotify will soon be in the “hall-of-famer” class alongside the likes of Netflix NFLX, -1.80% , Facebook FB, -1.73% and Google-parent Alphabet GOOG, +1.85%.
Spotify is “rapidly becoming something of a monopoly in the audio industry,” he wrote. “It’s doing what Facebook did with social media… what Amazon AMZN, +0.40% did with online shopping… and what Google did with online advertising.”
After a slow start to life in the public market, the stock has transformed from hated to loved, as you can clearly see by the parabolic move illustrated in this chart:
Spotify is currently valued at…
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