
Spotify (SPOT) Stock Forecast & Price Target
Spotify (SPOT) Analyst Ratings
Bulls say
Spotify Technology is positioned as the leading global music streaming service, boasting nearly 700 million monthly active users and over 250 million paying subscribers, which significantly contribute to its revenue and gross profit. The firm is capitalizing on the growing audiobook market, projected to reach $8.7 billion in global revenue with a 26% annual growth rate, following a recent court ruling that enhances monetization opportunities through updated app features. Additionally, Spotify's plans to increase premium tier pricing in newly launched audiobook markets and potentially in the U.S. suggest a conducive environment for higher average revenue per user (ARPU) growth in the future.
Bears say
Spotify Technology faces a range of financial risks that could negatively impact its valuation, primarily due to the potential increase in content costs and a decline in negotiating leverage. Additionally, the company's significant investments in research and development may not translate into incremental subscriptions, further straining revenue growth. The competitive landscape, coupled with diluted streaming economics and pressures from music piracy and legal issues related to its audiobook offerings, compounds the potential for adverse financial outcomes.
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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