Spotify reaching its aforementioned goal of 1 billion users would probably make it a tech giant. The long-term prospects for Spotify remain quite high, as it is basically becoming the go-to platform for streaming music and podcasts. The Long-term Prospects for Spotify Stock Moreover, as podcasting booms, Spotify’s ARPU is likely to pick up even more growth in the coming years. However, the trend may now have been reversed, and with an increasing ARPU, investors will find it more worthwhile to invest in SPOT. Spotify’s decreasing ARPU was one of the most significant factors behind previous selloffs. In short, Spotify’s premium users generate half the revenue of what Facebook’s regular users do. Meta’s ARPU is more than double at $11.57 worldwide, and a staggering $60.57 for users in the U.S and Canada. However, as I’ve mentioned before, it is still inadequate compared to other tech platforms. Fortunately, Spotify has managed to reverse that trend this quarter, and ARPU has increased to $5.03. In the last quarter, Spotify’s ARPU for premium declined to $4.98. Spotify’s ARPU has also consistently decreased for the past few years. However, even Spotify’s premium users do not generate anything close to what platforms such as Meta’s (NASDAQ: FB) Facebook generates.ħ Cheap Stocks to Buy Now if You Have $100 to Spend

Paying users are certainly more profitable for Spotify than those who use the platform for free. The critical metric for Spotify is its average revenue per user (ARPU), which is still poor.

Spotify Stock’s Performance Relies on This Key Metric

Spotify stock futures