Spotify Technology (NYSE:SPOT) Price Target Raised to $700.00

Key Points

• Morgan Stanley raised Spotify’s price target to $700 from $640 and maintained an “overweight” rating, implying 19.25% potential upside. JPMorgan also set a $700 target, while the broader analyst consensus is “Moderate Buy” with a $620.07 target.
• Spotify shares traded at $587.02, with a market capitalization of approximately $120.86 billion. The stock has risen above its 50-day and 200-day moving averages but remains below its 52-week high of $676.67.
• Recent company trends were positive, including 9% growth in premium subscribers to 306 million, 11% growth in monthly active users to 788 million, and revenue growth of roughly 16%. Investors also responded favorably to Spotify’s AI-driven personalization and discovery initiatives.

Spotify Technology (NYSE:SPOT - Get Free Report) had its target price raised by Morgan Stanley from $640.00 to $700.00 in a report issued on Friday, Benzinga reports. The firm currently has an "overweight" rating on the stock. Morgan Stanley's price target would suggest a potential upside of 19.25% from the stock's current price.

SPOT has been the subject of a number of other reports. Barclays increased their price objective on Spotify Technology from $565.00 to $650.00 and gave the stock an "overweight" rating in a report on Friday. Benchmark cut their target price on Spotify Technology from $695.00 to $650.00 and set a "buy" rating on the stock in a research note on Wednesday, July 22nd. Weiss Ratings raised Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, August 26th. Rosenblatt Securities reaffirmed a "neutral" rating and set a $527.00 price target on shares of Spotify Technology in a research report on Tuesday. Finally, JPMorgan Chase & Co. raised their price target on shares of Spotify Technology from $650.00 to $700.00 and gave the stock an "overweight" rating in a research note on Friday. One investment 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, the company has an average rating of "Moderate Buy" and a consensus target price of $620.07.

Spotify Technology Stock Performance

NYSE SPOT traded up $3.36 on Friday, reaching $587.02. The company had a trading volume of 1,418,727 shares, compared to its average volume of 2,200,167. The company's fifty day moving average is $525.20 and its 200-day moving average is $497.27. The firm has a market capitalization of $120.86 billion, a price-to-earnings ratio of 36.54, a price-to-earnings-growth ratio of 1.63 and a beta of 1.61. Spotify Technology has a 1-year low of $405.00 and a 1-year high of $676.67.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.16 by ($0.13). The firm had revenue of $5.45 billion during the quarter, compared to analyst estimates of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The business's revenue for the quarter 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, research analysts forecast that Spotify Technology will post 13.66 earnings per share for the current year.

Insider Transactions at Spotify Technology

In related news, CEO Gustav Söderström sold 20,910 shares of Spotify Technology stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $530.13, for a total transaction of $11,085,018.30. Following the completion of the transaction, 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 transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total value of $2,729,415.60. Following the transaction, the chief executive officer directly owned 66,773 shares in the company, valued at approximately $33,526,723.30. This trade represents a 7.53% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 68,092 shares of company stock worth $35,762,410. 0.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SPOT. Cantillon Capital Management LLC acquired a new position in shares of Spotify Technology during the 1st quarter worth approximately $213,047,000. Southpoint Capital Advisors LP bought a new position in Spotify Technology during the first quarter worth $193,964,000. Principal Financial Group Inc. increased its holdings in shares of Spotify Technology by 53.4% in the first quarter. Principal Financial Group Inc. now owns 989,667 shares of the company's stock valued at $479,899,000 after purchasing an additional 344,471 shares during the last quarter. Tiger Global Management LLC increased its holdings in shares of 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 purchasing an additional 319,300 shares during the last quarter. Finally, Janus Henderson Group PLC raised its position in shares of Spotify Technology by 20.1% in the first quarter. Janus Henderson Group PLC now owns 1,711,015 shares of the company's stock valued at $829,641,000 after purchasing an additional 286,844 shares during the period. 84.09% of the stock is currently owned by institutional investors.

Key Headlines Impacting Spotify Technology

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

• Positive Sentiment: Spotify’s premium subscribers rose 9% year over year to 306 million, exceeding company guidance by 1 million, while monthly active users increased 11% to 788 million. Management expects 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: Revenue rose roughly 16% year over year to €4.97 billion, and gross margin expanded 140 basis points to 33%, exceeding expectations. Advertising trends are improving, while expense growth is slowing and management expects further margin improvement into 2027.
• Positive Sentiment: Investors responded favorably to Spotify’s AI strategy, including its personalized “taste model,” AI-enabled discovery and efforts to make its service accessible through AI agents. The company said these initiatives are increasing content discovery and could drive engagement, retention and long-term pricing power. Spotify's current AI bet is about being the music service that agents choose
• Positive Sentiment: Several analysts raised their targets following the report. JPMorgan increased its target to $700 with an overweight rating, while Wells Fargo, Barclays, Guggenheim and Oppenheimer raised targets to between $650 and $660; Oppenheimer upgraded the stock to outperform. Spotify Analysts Raise Their Forecasts Following Q3 Earnings

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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