Spotify Technology (NYSE:SPOT) Shares Gap Down on Analyst Downgrade

Key Points

• Goldman Sachs downgraded Spotify Technology's stock from a buy rating to neutral, causing a gap down in the stock price from $728.47 to an opening of $705.26.
• Spotify's last trading price was $696.50; analysts maintain a consensus price target of $731.16, with varying ratings from Strong Buy to Hold amongst them.
• In its recent earnings report, Spotify missed consensus estimates, reporting ($0.42) earnings per share, despite revenue of $4.94 billion surpassing analyst expectations.

Spotify Technology (NYSE:SPOT - Get Free Report)'s stock price gapped down prior to trading on Tuesday after The Goldman Sachs Group downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $728.47, but opened at $705.26. The Goldman Sachs Group now has a $770.00 price target on the stock, up from their previous price target of $765.00. Spotify Technology shares last traded at $696.50, with a volume of 438,131 shares trading hands.

Other analysts have also recently issued research reports about the company. Morgan Stanley decreased their target price on Spotify Technology from $850.00 to $800.00 and set an "overweight" rating for the company in a report on Wednesday, July 30th. Pivotal Research increased their price objective on shares of Spotify Technology from $800.00 to $900.00 and gave the company a "buy" rating in a research note on Tuesday, June 17th. Argus assumed coverage on Spotify Technology in a research report on Monday. They issued a "buy" rating and a $845.00 target price for the company. UBS Group lowered their price objective on shares of Spotify Technology from $895.00 to $850.00 and set a "buy" rating for the company in a research report on Wednesday, July 30th. Finally, Cantor Fitzgerald upped their price objective on Spotify Technology from $610.00 to $640.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 18th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $731.16.

Institutional Trading of Spotify Technology

Institutional investors have recently modified their holdings of the company. Joel Isaacson & Co. LLC boosted its holdings in Spotify Technology by 1.0% in the 2nd quarter. Joel Isaacson & Co. LLC now owns 1,551 shares of the company's stock valued at $1,190,000 after purchasing an additional 15 shares during the period. Ignite Planners LLC lifted its position in Spotify Technology by 2.4% during the second quarter. Ignite Planners LLC now owns 637 shares of the company's stock worth $489,000 after purchasing an additional 15 shares during the period. Hartford Investment Management Co. grew its stake in Spotify Technology by 1.1% during the first quarter. Hartford Investment Management Co. now owns 1,449 shares of the company's stock worth $797,000 after buying an additional 16 shares in the last quarter. Stonekeep Investments LLC increased its holdings in Spotify Technology by 2.1% in the 2nd quarter. Stonekeep Investments LLC now owns 773 shares of the company's stock valued at $593,000 after buying an additional 16 shares during the period. Finally, Moody National Bank Trust Division increased its holdings in Spotify Technology by 0.5% in the 2nd quarter. Moody National Bank Trust Division now owns 2,931 shares of the company's stock valued at $2,249,000 after buying an additional 16 shares during the period. Institutional investors and hedge funds own 84.09% of the company's stock.

Spotify Technology Trading Down 4.9%

The firm's 50-day moving average price is $694.51 and its 200 day moving average price is $662.24. The company has a market capitalization of $141.83 billion, a price-to-earnings ratio of 167.88, a PEG ratio of 3.08 and a beta of 1.71.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings data 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). Spotify Technology had a net margin of 4.76% and a return on equity of 13.67%. The business had revenue of $4.94 billion during the quarter, compared to analyst estimates of $4.29 billion. During the same period last year, the business earned $1.33 earnings per share. The business's quarterly revenue was up 10.1% compared to the same quarter last year. Spotify Technology has set its Q3 2025 guidance at EPS. As a group, equities research analysts anticipate that Spotify Technology will post 10.3 earnings per share for the current fiscal year.

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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