Stockholm-based music streaming giant, Spotify, recently filed a complaint against Apple with the European Commission accusing it of violating anti-trust regulations. Recently, the Commission has been tough regarding anti-trust laws specifically related to bug tech companies.
Spotify reasoned that Apple has an ‘unfair advantage’ over its competitors as its control of its App Store limits customer choices and puts the pressure of fees on its rivals. Spotify has only approached the EU Commission after it failed to resolve the issue directly with Apple.
Spotify’s CEO explained that since the recent introduction of new rules for the App Store, the company has been acting both as a player and referee to deliberately disadvantage other app developers.
Due to these new rules, Spotify has to pay Apple a 30% tax on items purchased through Apple’s payment system. These fees disable Spotify as well as other digital services to maintain competitiveness when the market has more or less been monopolized by Apple.
Interestingly, Apple does not characterize these fees as ‘tax’, rather as a revenue share model for the App Store. Paid apps that don’t have a subscription model are also required to give Apple a 30% cut of each sale.
The CEO also accused Apple of blocking Spotify and other competitors from Apple’s services such as Siri, Home pod and Apple Watch.
SPOT saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 17, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The 10-day RSI Indicator for SPOT moved out of overbought territory on April 12, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SPOT as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPOT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPOT advanced for three days, in of 329 cases, the price rose further within the following month. The odds of a continued upward trend are .
SPOT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 315 cases where SPOT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SPOT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (19.380) is normal, around the industry mean (19.638). P/E Ratio (0.000) is within average values for comparable stocks, (49.308). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.441). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (3.627) is also within normal values, averaging (110.312).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a music platform
Industry InternetSoftwareServices