Spotify Technology (NYSE:SPOT) Stock Price Up 6.4% - Time to Buy?

Key Points

• Spotify Technology's stock surged by 6.4%, reaching a last traded price of $742.95, despite a significant drop in trading volume.
• Analysts have mixed views with target price adjustments: while some raised their price targets significantly, others have decreased them, indicating varying confidence in Spotify's stock.
• The company reported a loss of $0.42 per share in its last quarterly earnings, missing estimates, but demonstrated strong revenue growth with $4.94 billion, surpassing expectations.

Spotify Technology (NYSE:SPOT - Get Free Report)'s share price was up 6.4% during trading on Friday . The company traded as high as $741.00 and last traded at $742.95. Approximately 749,441 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 2,313,677 shares. The stock had previously closed at $698.50.

Analysts Set New Price Targets

A number of analysts recently commented on SPOT shares. 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 research report on Wednesday, July 30th. Loop Capital boosted their target price on Spotify Technology from $435.00 to $550.00 and gave the company a "hold" rating in a research report on Friday, May 2nd. Canaccord Genuity Group boosted their price objective on Spotify Technology from $775.00 to $850.00 and gave the stock a "buy" rating in a report on Wednesday, July 2nd. Phillip Securities raised Spotify Technology from a "moderate sell" rating to a "hold" rating in a research note on Monday, August 4th. Finally, Rosenblatt Securities cut their target price on Spotify Technology from $703.00 to $679.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 30th. Twenty equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $720.07.

Spotify Technology Price Performance

The company has a market capitalization of $144.11 billion, a P/E ratio of 170.87, a price-to-earnings-growth ratio of 3.15 and a beta of 1.69. The firm has a fifty day moving average price of $704.39 and a 200-day moving average price of $639.65.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced 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 firm had revenue of $4.94 billion for the quarter, compared to the consensus estimate of $4.29 billion. During the same period last year, the company posted $1.33 earnings per share. Spotify Technology's revenue for the quarter was up 10.1% on a year-over-year basis. Spotify Technology has set its Q3 2025 guidance at EPS. On average, research analysts forecast that Spotify Technology will post 10.3 EPS for the current year.

Institutional Investors Weigh In On Spotify Technology

A number of institutional investors and hedge funds have recently made changes to their positions in the business. B. Riley Wealth Advisors Inc. purchased a new stake in shares of Spotify Technology in the second quarter worth $1,156,000. Newbridge Financial Services Group Inc. raised its stake in Spotify Technology by 100.0% in the second quarter. Newbridge Financial Services Group Inc. now owns 1,600 shares of the company's stock valued at $1,228,000 after purchasing an additional 800 shares in the last quarter. Advisory Services Network LLC raised its stake in Spotify Technology by 3.5% in the second quarter. Advisory Services Network LLC now owns 7,344 shares of the company's stock valued at $5,635,000 after purchasing an additional 249 shares in the last quarter. Cim LLC lifted its position in Spotify Technology by 69.2% during the second quarter. Cim LLC now owns 37,814 shares of the company's stock valued at $29,016,000 after purchasing an additional 15,461 shares during the last quarter. Finally, Hudson Bay Capital Management LP lifted its position in Spotify Technology by 188.2% during the second quarter. Hudson Bay Capital Management LP now owns 20,571 shares of the company's stock valued at $15,785,000 after purchasing an additional 13,433 shares during the last quarter. Hedge funds and other institutional investors own 84.09% of the company's stock.

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.