Spotify. For those about to rock we salute you!

Since its inception in 2008, Spotify has grown to become the second-largest music streaming service by active users, with 675 million, trailing only YouTube at 2.7 billion users. Tencent Music, focused on the Chinese market, holds third place with 592 million active users. While YouTube remains the leader overall, Spotify has outpaced it in growth over the past five years, with Spotify growing at approximately 55% compared to YouTube’s 25%.

From a personal perspective, I use Spotify every day, as do my family members. It has become an essential component of our daily routine. Initially, we used it primarily for music, but now it also serves as our go-to platform for podcasts. I can’t imagine not having it!

The fundamentals look equally promising. While Spotify’s most recent quarterly EPS growth rate has slowed, this follows four consecutive quarters of triple-digit, accelerating EPS growth.

Technically, Spotify remains in a solid bullish trend that began in 2023. The stock is currently consolidating in a sideways range, holding just below its all-time highs. The consolidation, which began in February, is now entering its 13th week, placing it in the sweet spot for breakouts around the 8- to 26-week period.

A confirmed breakout above the 663.55 all-time high would open up higher targets, with the measured objective from the current range pointing to 816.02

On a closer look at the daily chart, Spotify has found support at the rising 21-day exponential moving average (EMA). The stock has refilled the bear gap from its first test of the all-time high and seems to be building the "handle" to a large cup-and-handle continuation pattern. Current levels present a quiet opportunity for entry.