
Spotify (SPOT) Stock Forecast & Price Target
Spotify (SPOT) Analyst Ratings
Bulls say
Spotify Technology demonstrated strong financial performance in its latest report, with premium subscribers increasing by 5 million to a total of 281 million, aligning with guidance, while monthly active users grew by 17 million to reach 713 million, exceeding expectations. The firm's gross margin improved to 31.6%, surpassing guidance by 50 basis points, and operating profit rose 28% year-over-year to €582 million, exceeding guidance by nearly €100 million primarily due to revenue and gross margin improvements. Additionally, ad sales are anticipated to accelerate in the second half of 2026, indicating potential for further revenue growth.
Bears say
Spotify Technology has experienced a decline in advertising revenues and an estimated flat average revenue per user (ARPU), contradicting previous growth expectations. Guidance for 4Q25 indicates that ad revenues are expected to underperform, with a 5.5% decrease in reported advertising revenues compared to earlier projections. Additionally, the company's profit margins face potential shortfalls due to rising content costs, increased competition, and challenges in generating new subscriptions from research and development investments.
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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