Spotify Tech. Thesis

Spotify is the global leader in music streaming. Its moat is its scale, which gives it leverage with music labels, and its data-driven personalization and discovery algorithms (e.g., Discover Weekly), which create an engaging user experience. The growth driver is the expansion into podcasts and audiobooks, which have better margin potential than music, and the growth of its advertising business. The investment thesis is that Spotify can leverage its user base and personalization technology to become the dominant platform for all audio.