Spotify Technology (NYSE:SPOT) Given New $650.00 Price Target at Barclays

Key Points

• Barclays raised Spotify’s price target from $565 to $650 and maintained an “overweight” rating, implying 11.61% potential upside from the referenced share price.
• Analyst sentiment is broadly positive: Spotify has a “Moderate Buy” consensus rating and an average price target of $615.24, though some firms maintain neutral ratings or have reduced targets.
• Spotify reported solid year-over-year revenue growth but narrowly missed quarterly earnings and revenue estimates. Shares were trading at $582.37, while insiders sold shares primarily to cover tax obligations tied to vested equity awards.

Spotify Technology (NYSE:SPOT - Get Free Report) had its price target upped by Barclays from $565.00 to $650.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has an "overweight" rating on the stock. Barclays's price objective indicates a potential upside of 11.61% from the company's current price.

Several other equities research analysts also recently commented on the company. Benchmark reduced their target price on Spotify Technology from $695.00 to $650.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. Phillip Securities upgraded Spotify Technology to a "buy" rating and set a $650.00 target price on the stock in a research note on Tuesday, August 11th. Piper Sandler assumed coverage on shares of Spotify Technology in a research report on Thursday, October 8th. They set a "neutral" rating and a $540.00 target price on the stock. Wells Fargo & Company reduced their price objective on shares of Spotify Technology from $600.00 to $570.00 and set an "overweight" rating for the company in a research note on Thursday, July 9th. Finally, Weiss Ratings upgraded Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, August 26th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $615.24.

Spotify Technology Price Performance

Shares of SPOT traded down $1.29 during midday trading on Friday, reaching $582.37. The stock had a trading volume of 229,169 shares, compared to its average volume of 2,193,548. Spotify Technology has a 52 week low of $405.00 and a 52 week high of $676.67. The firm's 50 day moving average price is $525.20 and its 200-day moving average price is $497.27. The company has a market capitalization of $119.90 billion, a P/E ratio of 36.38, a P/E/G ratio of 1.63 and a beta of 1.61.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share for the quarter, missing the consensus estimate of $3.16 by ($0.13). The firm had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The company's quarterly revenue was up 13.9% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.42) EPS. On average, equities analysts forecast that Spotify Technology will post 13.66 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Alex Norström sold 5,436 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $502.10, for a total value of $2,729,415.60. Following the completion of the transaction, the chief executive officer owned 66,773 shares in the company, valued at approximately $33,526,723.30. This represents a 7.53% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,910 shares of Spotify Technology stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $530.13, for a total transaction of $11,085,018.30. Following the sale, the chief executive officer owned 19,908 shares in the company, valued at approximately $10,553,828.04. This trade represents a 51.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 68,092 shares of company stock worth $35,762,410 in the last quarter. Corporate insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Spotify Technology

Hedge funds have recently modified their holdings of the stock. Janus Henderson Group PLC lifted its position in shares of Spotify Technology by 20.1% during the 1st quarter. Janus Henderson Group PLC now owns 1,711,015 shares of the company's stock worth $829,641,000 after buying an additional 286,844 shares during the period. Tiger Global Management LLC grew its position in Spotify Technology by 25.3% in the first quarter. Tiger Global Management LLC now owns 1,580,761 shares of the company's stock valued at $766,527,000 after acquiring an additional 319,300 shares during the period. Amundi raised its stake in Spotify Technology by 20.0% during the first quarter. Amundi now owns 1,104,484 shares of the company's stock worth $535,575,000 after acquiring an additional 183,994 shares in the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Spotify Technology by 53.4% during the first quarter. Principal Financial Group Inc. now owns 989,667 shares of the company's stock valued at $479,899,000 after acquiring an additional 344,471 shares during the period. Finally, Sei Investments Co. lifted its holdings in shares of Spotify Technology by 1.8% during the first quarter. Sei Investments Co. now owns 749,495 shares of the company's stock valued at $363,415,000 after acquiring an additional 13,381 shares during the period. 84.09% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Spotify Technology

Here are the key news stories impacting Spotify Technology this week:

• Positive Sentiment: Subscriber growth exceeded expectations: Premium subscribers rose 9% year over year to 306 million, one million above Spotify’s guidance, while monthly active users increased 11% to 788 million. Management expects to reach approximately 316 million premium subscribers and 818 million monthly active users in the fourth quarter. Spotify Stock Surges on Q3 Subscriber Beat and Bullish Forecast
• Positive Sentiment: Profitability trends improved: Third-quarter revenue rose roughly 16% year over year to about €4.97 billion, operating income reached €672 million, and gross margin expanded to 33%. Spotify expects fourth-quarter operating income and gross margin to remain stronger as costs and investment intensity moderate. Spotify revenue rises as subscribers and margins improve
• Positive Sentiment: AI is viewed as a future growth catalyst: Spotify highlighted its AI-powered “taste model,” personalized experiences and efforts to make its service accessible through AI agents. The company said AI is accelerating feature development without increasing headcount, potentially supporting engagement, retention and long-term margin expansion. Spotify’s current AI bet
• Positive Sentiment: Analyst sentiment improved: Guggenheim raised its price target to $650 and assigned a Buy rating, while Barclays also lifted its target to $650 and maintained Overweight. Guggenheim Spotify recommendations
• Neutral Sentiment: Mixed quarterly results: Adjusted earnings per share and revenue were slightly below consensus, although revenue growth remained healthy and subscriber and margin metrics were stronger than expected. Spotify forecasts fourth-quarter profit above estimates
• Negative Sentiment: Valuation and analyst caution remain risks: Cantor Fitzgerald raised its target to $550 but retained a Neutral rating, implying limited upside from the referenced price level. The earnings miss could also pressure the stock if subscriber momentum or AI-related benefits fail to translate into sustained profits. Cantor Fitzgerald Spotify recommendations

Spotify Technology Company Profile

Spotify Technology SA is an audio streaming company that operates the Spotify platform, offering users access to music, podcasts and audiobooks through internet-connected devices. Its catalog includes licensed recordings from music labels and artists, as well as podcasts and other audio content from creators and publishers.

Spotify provides both an ad-supported service and subscription-based Premium plans. Premium subscribers generally receive ad-free listening and additional features, while the advertising-supported service allows users to access content without a paid subscription.

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