SPOT is overvalued relative to the sector; speaker sold entire stake and ranks it last.

Good. Now, while these two stocks were soaring and their prices had clearly risen, the next stock is currently experiencing a very significant decline , and it is not a pharmaceutical stock at all.

In fact, it is a leading technology company, the audio streaming giant Spotify ( SPOT), in which Saudi Arabia doubled its stake in the last quarter, spending about $30 million on this stock.

Now, if you’ve been following my channel for a while, you might remember that I also owned a very small part of this stock myself, which I originally bought around the time they signed Joe Rogan to a temporary exclusive deal , which I thought at the time might be the beginning of Spotify finally expanding more strongly into video streaming, and finally becoming a real competitor to YouTube, a huge video streaming market that strangely seems to be under no real challenge.

Thus, I thought there might be a great opportunity for Spotify to grow and start to capture some market share . But over time, I found that the full video release for them was a rough user experience and I didn't really enjoy it.

I just feel like they completely missed this opportunity.

The platform itself, when it came to video, seemed incomplete. There was no comments section, and even today, after this feature was finally introduced, I personally no longer use Spotify, but I think it is still limited to only one comment per video.

You can correct me if I'm wrong about that, but from what I've read online, there's a strange rule about this which states that users can only leave one comment per video.

I think this makes it very difficult for viewers to communicate with content creators or even with other viewers as well. This is not what you want to do if you work in the field of social media.

So, I just feel like they really missed the opportunity here and didn't take full advantage of it . They did not do the things they should have done in order to really compete in this field, where they had a real opportunity to capture some market share.

Now, they have definitely stayed in the audio broadcasting business. It is clear that they are also offering video now. They are still working in this field, but their primary activity and main source of income will remain audio broadcasting.

But, even in the realm of audio alone, you know, if I try to look at Spotify from a fresh perspective today, I can't ignore the fierce competition they continue to face in the audio-only realm.

Like some of the richest big technology companies on the planet, including Apple with Apple Music, Amazon with Amazon Music, and Google with YouTube Music as well.

So, I'm not sure why anyone would want to own a music streaming stock like this, when you could simply invest in other tech giants and have much larger, more diversified businesses that generate tens of billions in profits each year and never have to rely solely on music subscriptions to survive.

Now, to be fair to Spotify, they are at least performing well in this limited space , and analysts are predicting sales and profits will rise by large and surprising amounts that I did not expect to see.

But, in the last quarter, they also officially surpassed the 300 million paid subscriber mark, which is certainly no small number . Even the stock itself has fallen by 35% in a significant recent decline.

However, their market value seems extremely high compared to the sector in terms of sales and profits. Therefore, I am not really interested in buying this stock again anytime soon .

I sold my entire stake in it . And I am completely satisfied with getting out of it. I gain exposure to everything they offer through other stocks, which I consider to be much better.

Therefore, I would actually put this stock last in our rankings.