Spotify still has legs, analysts see more bullish direction

Spotify Technology today
Spotify Technology
As of 05/2/2025 03:59 pm
- 52 weeks
- 286.21 dollars
▼
653.32 dollars
- P/E ratio.
- 108.03
- The target price
- 604.76 dollars
Spotify Technology New York: spot Her quarterly profits were delivered before the opening of the market on April 29. Investors were hoping to obtain a report that would approach the Netflix Inc. Nasdak: NFLXWhich confirmed the ups of the NFLX shares.
Spotify fell less than that. The report was not bad by any means, but investors hear often want to hear it. So when the company reported a little missing in operational income and other numbers that were achieved, but it did not exceed the company’s guidelines, the stock decreased more than 8 % immediately after the report.
However, in the following days, immediate shares have regained almost all this loss. This has investors wondering whether the stock will push to the highest new level ever. There is a good reason to believe.
The CEO says ignore noise
According to Spotify CEO, Daniel E you, there may be some short -term noise in the wider economy, however, EK believes that there is nothing that makes him not optimistic about the long -term expectations of Spotify.
In fact, EK note that the Spotify market continues to grow, and that the company takes a greater share of this market. In addition, the company achieves this growth with prices.
This growth It is reflected in some distinct standards like
- 15 % on annual basis (YOY) revenue growth
- Month active users (MAUS) increased by 10 % on an annual basis
- Distinguished subscribers increased by 12 % on an annual basis
- Free cash flow record (FCF)
And remember that investors were interacting with a little missing on the operating income. The other side of that story is that the operating income increased by 203 % in the quarter.
Freeemium can cut both directions
Spotify Technology stock forecasts today
604.76 dollars
Moderate purchase
Based on 29 analyst classifications
The current price | 642.77 dollars |
---|---|
High expectations | $ 740.00 |
Average expectations | 604.76 dollars |
Low expectations | $ 375.00 |
Spotify Technology Desochet Depults
The Spotify flow service is seen as immune from the tariff fears and provides good value to consumers even in times of economic uncertainty. As Netflix has shown, consumers will accept advertisements at the right price. For Spotify users, this low price is free.
In the collective call, EK note that this plan helps keep customers on the canal even at unconfirmed times. The company has made large investments to upgrade its liquefaction capabilities for this category of users.
These investments include Spotify AD Exchange (SAX), which features a program ads form that simplifies the purchase of ads with processing and measurement improvement tools. Spotify also enhances Spotify ads, the self -service platform, including “AI AI”, which allows advertisers access to improved text from artificial intelligence and create an audio comment.
These investments may be the reason for the disappointment of investors due to a serial decrease in advertising -backed revenue. But when accurate inspection, investors saw that this category of revenue increased by 8 % on an annual basis. In addition, the company’s revenues in the company generally increase in the fourth quarter of the company, which include holidays.
Analysts draw a mixed image
After the bounce again, the immediate shares are unified around the sign of $ 600. Ready -made meals are like many business services, the growth of Spotify is ripening, which means that investors and analysts raise their expectations. This is especially true for the arrow that trades with more than 100x profitability. Spotify is a commodity, and users will only pay a certain price for the service.
Since profits, analysts have been mixed with lower and higher price targets. However, analysts who reduce their goals still have the price goal much higher than the consensus price of $ 606.71. This combination indicates that the decline from the current levels is likely. However, this low step may allow investors to enter at a more attractive price.
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