Spotify Technology (NYSE:SPOT) Price Target Lowered to $500.00 at Rosenblatt Securities

Key Points

• Rosenblatt Securities cut its price target on Spotify from $670 to $500 and maintained a "neutral" rating, implying roughly a 15.3% upside from the stock's prior close.
• Q1 beat but weak guidance: Spotify reported stronger‑than‑expected Q1 revenue and EPS, yet its softer Q2 operating‑income guidance (€630M vs. ~€684M expected) spurred a sell‑off and highlighted near‑term margin and subscriber‑growth risks.
• Analyst divergence: Despite Rosenblatt's cut, the consensus remains a "Moderate Buy" with an average price target of $686.07 and the majority of analysts rating the stock Buy/Overweight.

Spotify Technology (NYSE:SPOT - Get Free Report) had its target price dropped by research analysts at Rosenblatt Securities from $670.00 to $500.00 in a report released on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Rosenblatt Securities' price target indicates a potential upside of 15.27% from the stock's previous close.

A number of other brokerages have also issued reports on SPOT. Moffett Nathanson initiated coverage on Spotify Technology in a report on Tuesday, January 27th. They issued a "neutral" rating and a $487.00 price target for the company. Wells Fargo & Company lowered their price target on Spotify Technology from $650.00 to $640.00 and set an "overweight" rating for the company in a report on Monday, April 13th. Morgan Stanley initiated coverage on Spotify Technology in a report on Monday, April 13th. They issued an "overweight" rating and a $630.00 price target for the company. Guggenheim lowered their price target on Spotify Technology from $720.00 to $600.00 and set a "buy" rating for the company in a report on Tuesday, February 24th. Finally, KeyCorp boosted their price target on Spotify Technology from $740.00 to $745.00 and gave the company an "overweight" rating in a report on Wednesday, April 15th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Spotify Technology has a consensus rating of "Moderate Buy" and an average price target of $686.07.

Spotify Technology Stock Performance

SPOT opened at $433.78 on Wednesday. The stock has a market cap of $89.31 billion, a price-to-earnings ratio of 45.00, a P/E/G ratio of 1.08 and a beta of 1.70. The stock's 50 day moving average price is $501.23 and its 200-day moving average price is $548.45. Spotify Technology has a one year low of $405.00 and a one year high of $785.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last released 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. The firm had revenue of $5.32 billion for the quarter, compared to analysts' expectations of $5.14 billion. Spotify Technology had a return on equity of 31.35% and a net margin of 13.16%.The company's quarterly revenue was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.88 earnings per share. As a group, analysts predict that Spotify Technology will post 15.73 earnings per share for the current fiscal year.

Insiders Place Their Bets

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

Institutional Trading of Spotify Technology

A number of hedge funds have recently bought and sold shares of the stock. Quadcap Wealth Management LLC lifted its holdings in Spotify Technology by 5.7% during the third quarter. Quadcap Wealth Management LLC now owns 295 shares of the company's stock worth $206,000 after buying an additional 16 shares during the period. Sage Mountain Advisors LLC lifted its holdings in Spotify Technology by 6.3% during the third quarter. Sage Mountain Advisors LLC now owns 289 shares of the company's stock worth $201,000 after buying an additional 17 shares during the period. Sagespring Wealth Partners LLC lifted its holdings in Spotify Technology by 2.9% during the fourth quarter. Sagespring Wealth Partners LLC now owns 636 shares of the company's stock worth $370,000 after buying an additional 18 shares during the period. Granite Group Advisors LLC lifted its holdings in shares of Spotify Technology by 2.6% during the 3rd quarter. Granite Group Advisors LLC now owns 756 shares of the company's stock valued at $528,000 after purchasing an additional 19 shares during the last quarter. Finally, Ameritas Advisory Services LLC lifted its holdings in shares of Spotify Technology by 7.9% during the 3rd quarter. Ameritas Advisory Services LLC now owns 260 shares of the company's stock valued at $181,000 after purchasing an additional 19 shares during the last quarter. Hedge funds and other institutional investors own 84.09% of the company's stock.

More Spotify Technology News

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

• Positive Sentiment: Q1 results beat Street estimates — Spotify reported stronger‑than‑expected revenue and EPS (Q1 EPS beat and revenue modestly above consensus), showing continued user and margin progress. Business Wire: Spotify Technology S.A. Releases Results for First Quarter 2026
• Positive Sentiment: Strategic product expansion — Spotify launched a fitness hub and a global partnership with Peloton (1,400+ classes for Premium users), which can drive engagement and new monetization paths beyond music/podcasts. CNBC: Spotify teams up with Peloton to launch global fitness content hub
• Positive Sentiment: Analyst estimate bumps — Erste Group raised its FY2026 and FY2027 EPS forecasts (FY2027 to $18.62; FY2026 to $14.91), signaling some sell‑side confidence in multi‑year earnings power despite short‑term headwinds.
• Neutral Sentiment: AI content friction — Users and third parties are building tools and raising questions about how (or whether) Spotify will label/filter AI‑generated music; product/policy choices here could affect UX and licensing but are not an immediate earnings hit. Digital Trends: Spotify apparently has no solid plan to label AI-generated music
• Negative Sentiment: Soft Q2 operating‑income guidance — Spotify forecast Q2 operating income of €630M vs. analyst estimates near €684M, a clear miss that compresses near‑term margin expectations and triggered heavy selling. Reuters: Spotify forecasts second-quarter profit below estimates, shares fall
• Negative Sentiment: Weaker subscriber/profit outlook — Management guided to smaller-than-expected premium‑subscriber adds and modest operating‑profit growth (e.g., projected net MAU and premium adds fell short of consensus), highlighting growth slowdown risk after recent price increases. CNBC: Spotify stock plummets after earnings beat expectations as guidance disappoints
• Negative Sentiment: Ad weakness, AI costs and regulatory noise — Reports cite advertising softness, higher AI investment and unresolved labeling/licensing issues plus regulatory scrutiny (payola‑style playlist promotion probes), all weighing on sentiment and margin visibility. Billboard: Why Spotify Stock Fell 12% Despite the Company’s Strong Earnings Report Digital Trends: Spotify apparently has no solid plan to label AI-generated music

About Spotify Technology

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.