At the beginning of last week, the shares of Spotify Technology SPOT,
took a hit when Guggenheim analyst Michael Morris cut stocks to sell, believing that “the market is now pricing stocks for blue sky growth, which has made the risk reward unattractive “
But that “blue sky growth” is still at stake, according to RiskHedge trader Justin Spittler, who claims that Spotify will soon be in the “hall of fame” class alongside players like Netflix NFLX,
, Facebook FB,
and Alphabet Parent-Google Goog,
Spotify is “fast becoming a monopoly in the audio industry,” he wrote. “He’s doing what Facebook did with social media … what Amazon AMZN,
did with online shopping … and what Google did with online advertising. “
After a slow start to life on the public market, the stock has transformed from hated to beloved, as can be clearly seen in the parabolic movement illustrated in this chart:
Spotify is currently valued at $ 50 billion, but Spittler sees exponential growth for the “world-class disruptor.” He predicts the stock will reach “hundreds of billions” in market capitalization in a few years, thanks in part to his aggressive push for podcasts, which include catching Bill Simmons and Joe Rogan.
Read:Kim Kardashian West to Create Social Justice Podcast for Spotify
“Just like Netflix did streaming, Spotify has established itself as the world’s # 1 destination for podcasts,” he wrote. “Spotify cornering the podcast industry should be THE greatest story in the business world. It will make Spotify an even stronger business than it is today. “
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