Spotify Technology (NYSE:SPOT) Lowered to "Neutral" Rating by The Goldman Sachs Group

Key Points

• The Goldman Sachs Group has downgraded Spotify Technology from a "buy" rating to a "neutral" rating, setting a target price of $770.00, which indicates a potential upside of 5.84%.
• Spotify's earnings report revealed a loss of ($0.42) earnings per share, significantly missing analyst expectations, despite achieving revenue of $4.94 billion.
• Current analyst ratings show strong support for Spotify, with one "Strong Buy," twenty-one "Buy," and eleven "Hold" ratings, leading to an average rating of "Moderate Buy."

Spotify Technology (NYSE:SPOT - Get Free Report) was downgraded by research analysts at The Goldman Sachs Group from a "buy" rating to a "neutral" rating in a research report issued on Tuesday,Finviz reports. They currently have a $770.00 target price on the stock. The Goldman Sachs Group's price objective points to a potential upside of 5.84% from the company's previous close.

A number of other equities analysts also recently issued reports on SPOT. BNP Paribas Exane initiated coverage on Spotify Technology in a research report on Tuesday, September 16th. They set an "outperform" rating and a $900.00 price target on the stock. Morgan Stanley reduced their price target on Spotify Technology from $850.00 to $800.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 30th. Argus initiated coverage on Spotify Technology in a research report on Monday. They set a "buy" rating and a $845.00 price target on the stock. BNP Paribas raised Spotify Technology to a "strong-buy" rating in a research report on Tuesday, September 16th. Finally, Oppenheimer upped their target price on Spotify Technology from $750.00 to $825.00 and gave the company an "outperform" rating in a research report on Monday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $731.16.

Spotify Technology Stock Up 1.5%

SPOT stock opened at $727.48 on Tuesday. Spotify Technology has a twelve month low of $362.31 and a twelve month high of $785.00. The firm has a market cap of $148.92 billion, a PE ratio of 176.57, a price-to-earnings-growth ratio of 3.08 and a beta of 1.71. The business has a 50 day moving average of $694.51 and a 200 day moving average of $662.24.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its earnings results on Tuesday, July 29th. The company reported ($0.42) earnings per share for the quarter, missing the consensus estimate of $2.00 by ($2.42). The company had revenue of $4.94 billion for the quarter, compared to analysts' expectations of $4.29 billion. Spotify Technology had a net margin of 4.76% and a return on equity of 13.67%. Spotify Technology's revenue for the quarter was up 10.1% on a year-over-year basis. During the same quarter last year, the firm posted $1.33 earnings per share. Spotify Technology has set its Q3 2025 guidance at EPS. On average, research analysts expect that Spotify Technology will post 10.3 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Spotify Technology

Several hedge funds have recently modified their holdings of SPOT. Knuff & Co LLC acquired a new stake in shares of Spotify Technology during the 2nd quarter worth approximately $27,000. Tsfg LLC acquired a new stake in Spotify Technology during the 1st quarter worth $28,000. Cornerstone Planning Group LLC raised its holdings in shares of Spotify Technology by 512.5% in the first quarter. Cornerstone Planning Group LLC now owns 49 shares of the company's stock valued at $29,000 after buying an additional 41 shares during the last quarter. Total Investment Management Inc. acquired a new position in shares of Spotify Technology during the second quarter worth about $29,000. Finally, North Star Investment Management Corp. increased its stake in shares of Spotify Technology by 52.8% during the 1st quarter. North Star Investment Management Corp. now owns 55 shares of the company's stock worth $30,000 after purchasing an additional 19 shares in the last quarter. 84.09% of the stock is owned by hedge funds and other institutional investors.

About Spotify Technology

Spotify Technology SA, together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.

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