Spotify Technology (NYSE:SPOT) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Spotify Technology from a buy rating to a hold rating, adding a slight negative note to sentiment around the stock.
• Despite that downgrade, the broader analyst view remains constructive: Spotify has an average “Moderate Buy” rating and a consensus price target of $655.92, with several firms still issuing buy or overweight ratings.
• Spotify’s latest earnings were strong, as the company reported $4.04 EPS versus the $3.41 consensus and revenue of $5.25 billion, up 8.2% year over year.

Spotify Technology (NYSE:SPOT - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Other equities research analysts have also recently issued research reports about the company. Wells Fargo & Company raised their price objective on Spotify Technology from $580.00 to $600.00 and gave the company an "overweight" rating in a research note on Friday, May 22nd. KeyCorp reduced their price objective on Spotify Technology from $745.00 to $680.00 and set an "overweight" rating for the company in a research note on Wednesday, April 29th. Weiss Ratings raised Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 4th. Daiwa Securities Group assumed coverage on Spotify Technology in a research report on Thursday, March 26th. They set an "outperform" rating and a $535.00 target price on the stock. Finally, UBS Group cut their target price on Spotify Technology from $760.00 to $735.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $655.92.

Spotify Technology Stock Performance

Shares of SPOT stock opened at $480.77 on Friday. The company has a market cap of $98.98 billion, a P/E ratio of 38.31, a PEG ratio of 1.19 and a beta of 1.56. The stock has a 50 day simple moving average of $482.76 and a two-hundred day simple moving average of $510.88. Spotify Technology has a fifty-two week low of $405.00 and a fifty-two week high of $785.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, topping analysts' consensus estimates of $3.41 by $0.63. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The business had revenue of $5.25 billion during the quarter, compared to the consensus estimate of $5.23 billion. During the same period in the previous year, the company posted $1.07 earnings per share. The firm's revenue for the quarter was up 8.2% on a year-over-year basis. On average, research analysts predict that Spotify Technology will post 14.71 earnings per share for the current year.

Insider Transactions at Spotify Technology

In other Spotify Technology news, Director Christopher P. Marshall sold 2,650 shares of the business's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $519.86, for a total value of $1,377,629.00. Following the sale, the director directly owned 4,039 shares in the company, valued at $2,099,714.54. The trade was a 39.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Alex Norstrom sold 5,436 shares of the business's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $479.51, for a total value of $2,606,616.36. Following the completion of the sale, the chief executive officer owned 69,989 shares in the company, valued at approximately $33,560,425.39. The trade was a 7.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 111,442 shares of company stock valued at $54,647,508. 0.40% of the stock is currently owned by insiders.

Institutional Trading of Spotify Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in SPOT. KERR FINANCIAL PLANNING Corp purchased a new position in Spotify Technology during the third quarter worth about $26,000. Portus Wealth Advisors LLC purchased a new position in Spotify Technology during the first quarter worth about $32,000. Kemnay Advisory Services Inc. purchased a new position in Spotify Technology during the fourth quarter worth about $32,000. Whipplewood Advisors LLC grew its position in Spotify Technology by 423.1% during the first quarter. Whipplewood Advisors LLC now owns 68 shares of the company's stock worth $33,000 after buying an additional 55 shares in the last quarter. Finally, Palladiem LLC purchased a new position in Spotify Technology during the first quarter worth about $34,000. 84.09% of the stock is currently owned by institutional investors.

More Spotify Technology News

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

• Positive Sentiment: Spotify’s Investor Day emphasized long-term growth targets focused on increasing subscriber conversion and strengthening its broader brand and AI-driven strategy, which investors viewed favorably. Spotify's "North Star" Outlook Was Music to Investors Ears
• Positive Sentiment: Spotify also brought in a new head of PR and communications, signaling a stronger focus on reputation management and clearer messaging as it expands its content and AI initiatives. Will Spotify (SPOT) Elevate Its Brand Narrative As AI Strategy Deepens Under New PR Leadership?
• Neutral Sentiment: Spotify reversed its iPhone app icon change after user backlash, a small brand-related issue that is unlikely to materially affect fundamentals. Spotify reverts iPhone app icon to original after disco-ball backlash
• Negative Sentiment: Several analysts trimmed earnings estimates slightly, including Erste Group Bank lowering FY2026 and FY2027 EPS forecasts, which adds a modest headwind to sentiment. Spotify Technology (SPOT) analyst estimate updates
• Negative Sentiment: Recent trading has also reflected broader weakness, with SPOT sliding in the latest sessions even as the market rose, suggesting investors are still cautious after a strong run. Spotify (SPOT) Stock Slides as Market Rises: Facts to Know Before You Trade

Spotify Technology Company Profile

Spotify Technology is a digital audio streaming company best known for its on-demand music service and a growing portfolio of spoken-word content. Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon and launched commercially in 2008, the company offers a cross-platform app that enables users to discover, stream and organize music, podcasts and other audio. Its primary consumer products include a free, ad-supported tier and a paid Spotify Premium subscription that provides ad-free listening, offline playback and higher-quality audio streams.

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