In the last 5 years, Spotify Technology (SPOT) has outperformed the market with an average annual return of 16.35%, which is 3.56% higher than the market average. As a result, the company’s current market capitalization stands at $62.30 billion.
If an investor had purchased $100 of SPOT stock 5 years ago, it would now be worth $213.25 based on the current price of $313.00 per share. This growth can be attributed to compounded returns, which are crucial in building wealth over time.
By understanding how returns accumulate over a period of time, investors can make more informed decisions about their investments and potentially see greater returns. Therefore, it is essential for investors to be aware of compounded returns and their impact on their investment portfolios.
