
Spotify (SPOT) Stock Forecast & Price Target
Spotify (SPOT) Analyst Ratings
Bulls say
Spotify Technology demonstrates a strong financial outlook characterized by a notable increase in premium gross margins, which expanded by 160bps, alongside a substantial 38 million net additions to monthly active users, setting a company record. The firm's strategic enhancements, including improvements to the free mobile tier and growth initiatives in audiobooks, further support revenue projections, with upward revisions to their FY27E revenues and EBIT by 2% and 7%, respectively. Additionally, management anticipates ongoing gross and operating margin expansions through 2026, while innovative product offerings and effective advertising strategies are expected to contribute positively to revenue growth and profitability.
Bears say
Spotify Technology faces significant risks that contribute to a negative outlook on its stock. Key concerns include a potential slowdown in subscription revenue if price increases do not materialize, along with deceleration in monthly active user (MAU) and premium subscriber growth. Additionally, moderation in gross margin expansion due to rising content costs and a decline in average revenue per user (ARPU) further complicate the financial outlook for the company.
This aggregate rating is based on analysts' research of Spotify and is not a guaranteed prediction by Public.com or investment advice.
Spotify (SPOT) Analyst Forecast & Price Prediction
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