Alex Morris from TSOH on Spotify $SPOT

Alex Morris, founder of The Science of Hitting, comes on the podcast to discuss his investment thesis for Spotify (SPOT). Topics include how Spotify can compete with larger competitors like Apple and Amazon, why Spotify is gaining the upper hand in negotiations with record labels, and how Spotify today rhymes with Netflix in the early stages of their streaming pivot.The science of hitting substack: https://thescienceofhitting.substack.com/Chapters0:00 Intro1:40 Why is Spotify a good investment?4:40 How the past year built Alex's confidence in SPOT7:55 Spotify as Netflix 2.011:30 Spotify's discover potential versus Netflix home page13:40 Bear case #1: Competing with giants17:35 Bear case #2: Lack of operating leverage and dealing with labels22:10 Touching on the Taylor Swift re-recording24:40 Bear case #3: Valuation32:00 Bear case #4: Opportunity cost versus buying Twitter37:40 Bear case #4 continued: Why not buy a label?41:37 Live and podcast opportunity46:10 Spotify's video opportunity48:20 Content moderation issues52:45 Spotify's concert and live event opportunity55:45 What could Spotify acquire?1:01:40 Alex's closing thoughts