SPOTIFY WORTH $43.5 BILLION? EASY, TIGER

To say that Mark Mahaney is bullish on Spotify would be something of an understatement. Just days before the streamery’s high-profile direct listing on 4/3, the RBC Capitol analyst proclaimed that the Daniel Ek-piloted company could be worth as much as—say what?—$43.5b.

As CNN Money points out, such a market valuation would make Spotify—which has yet to turn a profit—worth more than Ford, Delta, Target, Travelers and 370 other S&P 500 companies.

Mahaney’s mind-blowing projection is derived by valuing Spotify at about five times his 2019 revenue estimate, or $41.6b. Add another $1.9b in cash on the company’s balance sheet and you get $43.5b.

He believes the combination of the subscriptions and ad sales should keep Spotify's overall revenue growing at a nearly 30% annual clip for the next few years, while sales could hit $8.32b in 2019. Mahaney has a $220 price target on Spotify.

Right now, you may be saying to yourself, “I want some of whatever drug he’s on.” We’ll have a better idea about Mahaney’s grasp of reality come Tuesday.