SPOT Earnings Yield of 1.3% according to current data — meaning you’re getting about 1.3 cents of profit per dollar invested. LOL!
Better you give me your hard-earned money and I'll give you 2% instead of 1.3%. I like to splurge! :)
The Structural Constraint
Spotify cannot scale margins the way Netflix did because:
They don’t own the content
They don’t control input costs
They have to pay out ~70% of every dollar to rights holders
Their pricing power is weak and regulated by deals with labels
The labels decide what happens to Spotify’s margins, not Spotify
This is the definition of a business with a hard economic ceiling.
No amount of subscribers fixes the cost structure.
Spotify’s long-run net margin:
1–2% (When they “beat,” the gains evaporate the next quarter.) If Spotify hit 5% margins — a level they’ve never sustained.
And on a positive note —
THANK YOU for helping me hit 5,000 followers! 🙏🔥
Let’s keep going.
If you find value in the work:
👉 Boost
👉 Follow
👉 Leave a comment
Let’s push to 6,000 and keep building a community rooted in facts, not fairy tales.
Better you give me your hard-earned money and I'll give you 2% instead of 1.3%. I like to splurge! :)
The Structural Constraint
Spotify cannot scale margins the way Netflix did because:
They don’t own the content
They don’t control input costs
They have to pay out ~70% of every dollar to rights holders
Their pricing power is weak and regulated by deals with labels
The labels decide what happens to Spotify’s margins, not Spotify
This is the definition of a business with a hard economic ceiling.
No amount of subscribers fixes the cost structure.
Spotify’s long-run net margin:
1–2% (When they “beat,” the gains evaporate the next quarter.) If Spotify hit 5% margins — a level they’ve never sustained.
And on a positive note —
THANK YOU for helping me hit 5,000 followers! 🙏🔥
Let’s keep going.
If you find value in the work:
👉 Boost
👉 Follow
👉 Leave a comment
Let’s push to 6,000 and keep building a community rooted in facts, not fairy tales.
עסקה פעילה
Double CRACK! As expected.עסקה סגורה: היעד הושג
Target not Reached but Tradingview is forcing it on me.Anyway, the proof is in the pudding.
Way too expensive for the price it was trading at and still is.
look for lower. But no shorting initiated now. Too late!
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.