
Spotify (SPOT) Stock Forecast & Price Target
Spotify (SPOT) Analyst Ratings
Bulls say
Spotify Technology, a leading music streaming service, boasts over 700 million monthly active users and 281 million paying subscribers, indicating a strong core of premium revenue generation. The company's premium revenue growth is outpacing content costs, supported by stable royalty rates and successful pricing strategies, contributing to favorable gross margin expansion projected at 33.6%, above consensus estimates. Additionally, a 28% year-over-year increase in operating profit to €582 million reflects robust performance, driven by enhanced revenue prospects and operational efficiencies that position the company for continued financial strength.
Bears say
Spotify Technology is experiencing challenges in its advertising revenue growth, with 4Q25 guidance falling short of previous models and a significant slowdown in year-over-year ad growth, dropping from +4.6% in 2Q25 to flat in 3Q25. The average revenue per user (ARPU) has decelerated to an estimated 0% in 3Q25, raising concerns about potential margin erosion, which could impact the firm's overall profitability. Additionally, various risks, including escalating content costs, diminished negotiating leverage, and increased competition, suggest a challenging environment that may hinder Spotify's ability to sustain its growth trajectory.
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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