Spotify Technology (NYSE:SPOT) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Spotify from a "hold" to a "buy"; the stock carries a MarketBeat consensus of "Moderate Buy" with a consensus target price of $692.14 (2 Strong Buy, 22 Buy, 7 Hold).
• Spotify beat Q1 expectations, reporting $5.16 EPS vs. $3.16 expected and $5.32B revenue vs. $5.14B, with a 13.16% net margin and 31.35% ROE while revenue rose 6.8% year‑over‑year.
• Notable insider selling occurred on April 1 (CEOs Gustav Soderstrom and Alex Norstrom reduced their holdings) and a Texas probe of streaming platforms introduces a regulatory risk that could pressure sentiment.

Spotify Technology (NYSE:SPOT - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Sunday.

Several other analysts also recently weighed in on SPOT. Moffett Nathanson initiated coverage on shares of Spotify Technology in a report on Tuesday, January 27th. They issued a "neutral" rating and a $487.00 target price for the company. Daiwa Securities Group initiated coverage on shares of Spotify Technology in a report on Thursday, March 26th. They issued an "outperform" rating and a $535.00 target price for the company. Arete Research upgraded shares of Spotify Technology from a "neutral" rating to a "buy" rating and set a $586.00 target price for the company in a report on Thursday, February 26th. The Goldman Sachs Group upgraded shares of Spotify Technology from a "neutral" rating to a "buy" rating and dropped their target price for the company from $735.00 to $700.00 in a report on Friday, January 23rd. Finally, Sanford C. Bernstein dropped their target price on shares of Spotify Technology from $830.00 to $650.00 and set an "outperform" rating for the company in a report on Wednesday, January 14th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $692.14.

Spotify Technology Stock Performance

SPOT stock opened at $516.85 on Friday. Spotify Technology has a one year low of $405.00 and a one year high of $785.00. The firm's 50 day moving average price is $501.08 and its 200-day moving average price is $552.33. The firm has a market cap of $106.41 billion, a PE ratio of 53.62, a PEG ratio of 1.12 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 earnings per share for the quarter, beating the consensus estimate of $3.16 by $2.00. Spotify Technology had a net margin of 13.16% and a return on equity of 31.35%. The firm had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.14 billion. During the same quarter last year, the firm earned $1.88 EPS. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. Equities research analysts predict that Spotify Technology will post 15.73 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Gustav Soderstrom sold 20,833 shares of the business's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $473.52, for a total transaction of $9,864,842.16. Following the completion of the transaction, the chief executive officer owned 20,609 shares in the company, valued at approximately $9,758,773.68. The trade was a 50.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Alex Norstrom sold 5,436 shares of the business's 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 transaction, the chief executive officer owned 69,989 shares of the company's stock, valued at approximately $33,560,425.39. The trade was a 7.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Spotify Technology

Several large investors have recently bought and sold shares of the stock. Keybank National Association OH boosted its stake in Spotify Technology by 4,035.1% in the first quarter. Keybank National Association OH now owns 35,479 shares of the company's stock valued at $17,204,000 after acquiring an additional 34,621 shares in the last quarter. GPM Growth Investors Inc. boosted its stake in Spotify Technology by 14.4% in the first quarter. GPM Growth Investors Inc. now owns 4,430 shares of the company's stock valued at $2,148,000 after acquiring an additional 557 shares in the last quarter. Physician Wealth Advisors Inc. boosted its stake in Spotify Technology by 638.5% in the first quarter. Physician Wealth Advisors Inc. now owns 96 shares of the company's stock valued at $47,000 after acquiring an additional 83 shares in the last quarter. WD Rutherford LLC boosted its stake in Spotify Technology by 114.5% in the first quarter. WD Rutherford LLC now owns 1,688 shares of the company's stock valued at $819,000 after acquiring an additional 901 shares in the last quarter. Finally, USS Investment Management Ltd boosted its stake in Spotify Technology by 269.6% in the first quarter. USS Investment Management Ltd now owns 95,481 shares of the company's stock valued at $46,294,000 after acquiring an additional 69,647 shares in the last quarter. Institutional investors and hedge funds own 84.09% of the company's stock.

Spotify Technology News Roundup

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

• Positive Sentiment: Analysts and bullish write-ups are painting SPOT as a buy ahead of earnings, arguing the stock is attractively priced after a pullback and resilient to macro/AI headwinds. Buy Spotify Technology Stock Now Down 33% Before Earnings
• Positive Sentiment: Price-target upgrades and inclusion on “best stocks” lists (plus KeyBanc’s lift) are supporting optimism, which can attract short-term buying into the earnings window. Spotify Technology (SPOT) Boosted by $5 Ahead of Upcoming Q1 Report
• Positive Sentiment: Macro-driven rebounds in European tech have highlighted Spotify as an undervalued name, drawing fresh flow from thematic screens and value-seeking funds. 3 Undervalued European Tech Stocks to Buy After the Ceasefire (SPOT)
• Neutral Sentiment: Analyst models and key-metric projections for Spotify’s Q1 (subs, ARPU, ad revenue) are being closely watched — the report could swing the stock either way depending on guidance and metric beats/misses. What Analyst Projections for Key Metrics Reveal About Spotify (SPOT) Q1 Earnings
• Neutral Sentiment: Coverage of Spotify’s 20th anniversary highlights long-term strategic questions (new features, content, monetization) — positive for narrative but unclear near-term earnings impact. Spotify At 20 Sparks Fresh Questions On Growth And Valuation The highs and lows of Spotify’s first 20 years
• Negative Sentiment: Regulatory risk surfaced after Texas announced a probe of streaming platforms — any escalation or broader legal/regulatory action could weigh on sentiment and valuation. Texas announces probe of music streaming platforms. Spotify stock whipsaws

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.