Spotify Technology (NYSE:SPOT) Given New $695.00 Price Target at Benchmark

Key Points

• Benchmark cut its price target from $760 to $695 but kept a "buy" rating, with the new target implying roughly a 56% upside from the prior close.
• Several other firms trimmed targets while maintaining mostly positive ratings; MarketBeat's consensus is a Moderate Buy with an average price target of $647.68.
• Spotify beat Q1 revenue and EPS but issued weak Q2 guidance and flagged ad‑revenue softness, triggering a post‑earnings selloff, and both CEOs disclosed sizable share sales.

Spotify Technology (NYSE:SPOT - Get Free Report) had its target price lowered by investment analysts at Benchmark from $760.00 to $695.00 in a report released on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Benchmark's price target points to a potential upside of 56.36% from the stock's previous close.

A number of other research analysts have also issued reports on SPOT. Morgan Stanley began coverage on shares of Spotify Technology in a research note on Monday, April 13th. They set an "overweight" rating and a $630.00 price target on the stock. Cantor Fitzgerald cut their price target on shares of Spotify Technology from $525.00 to $430.00 and set a "neutral" rating on the stock in a research note on Wednesday. KeyCorp cut their price target on shares of Spotify Technology from $745.00 to $680.00 and set an "overweight" rating on the stock in a research note on Wednesday. Sanford C. Bernstein cut their price target on shares of Spotify Technology from $830.00 to $650.00 and set an "outperform" rating on the stock in a research note on Wednesday, January 14th. Finally, Wells Fargo & Company cut their price target on shares of Spotify Technology from $640.00 to $580.00 and set an "overweight" rating on the stock in a research note on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, Spotify Technology has a consensus rating of "Moderate Buy" and an average price target of $647.68.

Spotify Technology Stock Performance

NYSE:SPOT traded up $10.29 during midday trading on Wednesday, reaching $444.49. 3,555,090 shares of the stock traded hands, compared to its average volume of 2,699,876. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $785.00. The business has a 50-day moving average of $501.23 and a two-hundred day moving average of $548.45. The stock has a market capitalization of $91.51 billion, a PE ratio of 46.11, a price-to-earnings-growth ratio of 1.08 and a beta of 1.70.

Spotify Technology (NYSE:SPOT - Get Free Report) last posted its earnings results on Wednesday, February 11th. The company reported $5.16 EPS for the quarter, beating analysts' consensus estimates of $3.16 by $2.00. Spotify Technology had a net margin of 13.16% and a return on equity of 31.35%. The company had revenue of $5.32 billion during the quarter, compared to analysts' expectations of $5.14 billion. During the same quarter in the prior year, the company posted $1.88 earnings per share. Spotify Technology's revenue for the quarter was up 6.8% compared to the same quarter last year. Research analysts anticipate that Spotify Technology will post 15.73 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Gustav Soderstrom sold 20,833 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $473.52, for a total value of $9,864,842.16. Following the sale, the chief executive officer owned 20,609 shares in the company, valued at $9,758,773.68. This represents a 50.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Alex Norstrom sold 5,436 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $479.51, for a total transaction of $2,606,616.36. Following the completion of the sale, the chief executive officer owned 69,989 shares in the company, valued at $33,560,425.39. The trade was a 7.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.40% of the stock is owned by corporate insiders.

Institutional Trading of Spotify Technology

Hedge funds and other institutional investors have recently made changes to their positions in the business. Greykasell Wealth Strategies Inc. increased its stake in shares of Spotify Technology by 3,800.0% in the third quarter. Greykasell Wealth Strategies Inc. now owns 39 shares of the company's stock worth $27,000 after acquiring an additional 38 shares during the period. KERR FINANCIAL PLANNING Corp acquired a new stake in shares of Spotify Technology in the third quarter worth $26,000. Westfuller Advisors LLC acquired a new stake in shares of Spotify Technology in the third quarter worth $29,000. Albion Financial Group UT increased its stake in shares of Spotify Technology by 80.0% in the third quarter. Albion Financial Group UT now owns 45 shares of the company's stock worth $31,000 after acquiring an additional 20 shares during the period. Finally, JPL Wealth Management LLC acquired a new stake in shares of Spotify Technology in the third quarter worth $35,000. Institutional investors and hedge funds own 84.09% of the company's stock.

Spotify Technology News Summary

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

• Positive Sentiment: Q1 results beat expectations — revenue and EPS came in ahead of consensus, and Spotify reported healthy MAU/subscriber trends that underpin longer‑term growth assumptions. BusinessWire: Q1 Results
• Positive Sentiment: Product/partnership progress: Spotify is pushing into fitness content (Peloton tie‑up and curated fitness hub), which helps diversify engagement and monetization beyond music. Bloomberg: Peloton Partnership
• Positive Sentiment: Institutional interest and analyst support remain — several firms reaffirmed buy/overweight ratings even while cutting targets, leaving meaningful upside in many models (e.g., Goldman Sachs, Wells Fargo, KeyCorp still at buy/overweight). That creates a base for bargain‑hunting after the post‑earnings selloff. Benzinga: Analyst Updates
• Neutral Sentiment: Street model tweaks: Erste raised FY2026/2027 EPS estimates modestly, which supports an improved earnings trajectory but contrasts with near‑term guidance weakness. MarketBeat: Analyst Estimate Changes
• Negative Sentiment: Weak Q2 guidance — Spotify forecast Q2 operating income and premium subscriber additions below many analysts’ expectations, which triggered the sharp post‑earnings selloff and remains the dominant bear case for near‑term multiples. Reuters: Q2 Guidance Miss
• Negative Sentiment: Ad‑revenue softness and subscriber concerns — coverage highlights slowing ad growth and questions about whether recent price increases will sustain premium additions, pressuring near‑term top‑line momentum. TheStreet: Ad/Subscriber Concerns
• Negative Sentiment: Multiple price‑target cuts — several firms trimmed targets (Cantor Fitzgerald, Barclays, Guggenheim, Rosenblatt, Pivotal, others). While many ratings remain positive, the broad cut in targets reflects elevated uncertainty about near‑term margins and ad recovery. Benzinga: PT Cuts

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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