
Spotify (SPOT) Stock Forecast & Price Target
Spotify (SPOT) Analyst Ratings
Bulls say
Spotify Technology serves as the leading global music streaming service, boasting over 700 million monthly active users and 281 million premium subscribers, the latter being the primary source of revenue and gross profit. The company has demonstrated strong financial performance, with a reported operating profit of €582 million, reflecting a 28% year-over-year increase, and a gross margin of 31.6%, which surpassed expectations. Additionally, continued product innovation and the successful expansion of premium subscribers and ad-supported users indicate robust growth and revenue prospects, supporting a favorable outlook for the company's financial future.
Bears say
Spotify Technology's stock outlook is negatively influenced by disappointing guidance for ad revenues in 4Q25, which fell short of previous models. The advertising segment experienced a downturn, with a reported dip of 5.5% and flat growth in constant currency, alongside decelerating average revenue per user (ARPU) trends. Furthermore, potential risks to margins arise from rising content costs, declining negotiating power, and challenges in generating additional subscriptions from research and development investments amidst increasing competition and piracy concerns.
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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