First "large cap" deep dive writeup for my new Substack

Apr 22, 2023

As I mentioned a week ago, I started a new Substack focused exclusively on large caps (above $10B market cap) while keeping my original Substack focused on small/mid caps (under $10B market cap).

The first deep dive went out last night on Spotify (SPOT).

Jonah’s Deep Dives on Large/Mega Caps

Part 1: Deep dive writeup on Spotify ($SPOT)

In order to read this deep dive writeup on Spotify (SPOT) you’ll need to become a paid subscriber by clicking the button below. If you’re already a paid subscriber then I thank you for your support. Paid subscribers receive 3-4 deep dive writeups per month plus they get full access to my current investment portfolio (up +33% YTD), all of my daily activity, my investment models and my daily webcasts…

2 months ago · 1 like · Jonah Lupton

I don’t currently have a position in SPOT but it’s definitely on my watchlist. As a potential shareholder I’m a little surprised that have not started increasing prices like NFLX did a few years ago. SPOT is still doing $9.99 plans but considering how often I use the service (3-4 hours per day) I’d definitely be willing to pay more. Perhaps the SPOT management team is worried if they start increasing prices then customers will defect to Apple Music. I think SPOT should lay the groundwork to increase prices by $1 per month (per year) with a goal of getting to $14.99 per month by 2027 or 2028.

It’s also worth mentioning the founder/CEO of SPOT thinks they can get to 1 billion paid subs over the next decade (actually by 2030) although that would require 22% compounding growth from current numbers which seems too optimistic but if they did pull that off the stock returns would be significant so perhaps this is why they are against raising prices… because it might slow down growth and reduce the probability of hitting these subscriber targets.

Enjoy the weekend,

Jonah

Jonah’s Deep Dives on Small/Mid Caps

First "large cap" deep dive writeup for my new Substack