Qualcomm (QCOM), Spotify (SPOT), and Match (MTCH) reported quarterly results last week. Qualcomm, which supplies 5G chips for the mobile market, posted the most impressive results.
Qualcomm earned $3.23 a share from revenue of $10.7 billion. It bought back $1.9 billion in stock. For Q2, the company expects revenue of up to $11 billion. It will earn between $2.80 and $3.00 a share.
The growing controversy around Spotify is unsettling. Joe Rogan interviews guests who are against Covid-19 vaccination. This led two prominent musicians, Joni Mitchell and Neil Young to pull their music from the site.
Spotify reported revenue growing by 24% Y/Y to EUR 2.69 billion. MAUs rose by only 18% Y/Y, while premium subscribers grew to 180 million, up 16% Y/Y. Spotify is paying too much for artists. This is an unsustainable business model. SPOT stock is not a growth play.
Online dating site Match Group posted revenue growing by 24% Y/Y to $806.1 million. Paying subscribers rose by 15% to 16.2 million. Match’s lack of strong growth is a major issue for growth investors. The stock is too expensive, at a P/E in the 60 times range. Investors should consider avoiding MTCH stock. The downside risks are increasing at current price levels.
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