Spotify Technology (NYSE:SPOT) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan Chase & Co. raised its price target on Spotify to $650 from $600 and kept an overweight rating, implying about 25% upside from the current share price.
• Spotify shares were trading up 5.9% at $518.95, after the company reported a strong quarter with EPS of $4.04, beating estimates, and revenue of $5.25 billion, slightly above expectations.
• Analyst sentiment remains broadly bullish: the stock carries a Moderate Buy consensus with a $652.46 average price target, even as some analysts trimmed targets and company insiders sold shares recently.

Spotify Technology (NYSE:SPOT - Get Free Report) had its target price lifted by equities research analysts at JPMorgan Chase & Co. from $600.00 to $650.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price would suggest a potential upside of 25.25% from the stock's current price.

A number of other equities analysts have also issued reports on the company. Canaccord Genuity Group decreased their price target on Spotify Technology from $750.00 to $720.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. Guggenheim lowered their target price on Spotify Technology from $600.00 to $565.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Weiss Ratings raised shares of Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, May 4th. Rosenblatt Securities lifted their price objective on shares of Spotify Technology from $500.00 to $534.00 and gave the stock a "neutral" rating in a research note on Friday. Finally, Arete Research raised shares of Spotify Technology from a "neutral" rating to a "buy" rating and set a $586.00 target price for the company in a research note on Thursday, February 26th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $652.46.

Spotify Technology Stock Up 5.9%

SPOT stock traded up $29.02 during trading on Friday, reaching $518.95. 4,103,456 shares of the company's stock were exchanged, compared to its average volume of 2,669,841. Spotify Technology has a 1-year low of $405.00 and a 1-year high of $785.00. The firm has a market cap of $106.84 billion, a PE ratio of 41.36, a P/E/G ratio of 1.05 and a beta of 1.55. The company's fifty day moving average price is $479.71 and its 200-day moving average price is $523.90.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, beating analysts' consensus estimates of $3.41 by $0.63. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The business had revenue of $5.25 billion for the quarter, compared to analysts' expectations of $5.23 billion. During the same period in the previous year, the business earned $1.07 earnings per share. The company's revenue was up 8.2% on a year-over-year basis. As a group, sell-side analysts expect that Spotify Technology will post 14.87 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Gustav Soderstrom sold 20,833 shares of Spotify Technology stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $430.72, for a total transaction of $8,973,189.76. Following the transaction, the chief executive officer owned 20,492 shares in the company, valued at approximately $8,826,314.24. The trade was a 50.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norstrom sold 5,436 shares of the stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 69,989 shares of the company's stock, valued at approximately $33,560,425.39. This represents a 7.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 47,102 shares of company stock valued at $21,444,648 in the last 90 days. Corporate insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Spotify Technology

Institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new position in Spotify Technology in the fourth quarter valued at about $711,460,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Spotify Technology by 1,382.3% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,247,182 shares of the company's stock valued at $724,251,000 after buying an additional 1,163,045 shares during the last quarter. Capital World Investors increased its holdings in Spotify Technology by 40.7% in the third quarter. Capital World Investors now owns 2,730,713 shares of the company's stock worth $1,906,260,000 after buying an additional 789,755 shares during the last quarter. Capital Research Global Investors acquired a new position in Spotify Technology in the third quarter worth approximately $512,190,000. Finally, Coatue Management LLC raised its position in Spotify Technology by 35.9% during the fourth quarter. Coatue Management LLC now owns 2,450,881 shares of the company's stock valued at $1,423,251,000 after acquiring an additional 647,708 shares in the last quarter. 84.09% of the stock is currently owned by hedge funds and other institutional investors.

More Spotify Technology News

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

• Positive Sentiment: Wells Fargo raised its price target on Spotify to $600 and reiterated an overweight rating, signaling confidence in further upside. Wells Fargo raises Spotify price target to $600
• Positive Sentiment: Citizens JMP lifted its target to $625 with a market outperform rating, while Barclays, Morgan Stanley and Rosenblatt also increased targets, reinforcing a broadly bullish analyst tone. Citizens JMP raises Spotify price target
• Positive Sentiment: Investors reacted positively to Spotify’s Investor Day, where management outlined long-term financial targets, including mid-teens revenue growth and gross margins of 35% to 40% by 2030. Spotify stock pops on guidance at first investor day since 2022
• Positive Sentiment: New AI-related product and licensing announcements, including a deal with Universal Music for fan-made AI covers and remixes, suggest fresh monetization opportunities and have helped fuel the rally. Spotify strikes deal with Universal Music to let premium users create AI covers, remixes
• Neutral Sentiment: Spotify also unveiled new AI tools for podcasts, audiobooks, and fan engagement features, broadening its platform but with uncertain near-term financial impact. Spotify adds AI-powered Q&A and briefing generation features to podcasts
• Negative Sentiment: One recent note flagged weaker advertising trends as a concern, which could weigh on sentiment if ad growth continues to lag expectations. Spotify: Weaker Advertising Trends Are Becoming A Concern

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.

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