Spotify Technology (NYSE:SPOT) Rating Increased to Strong-Buy at BNP Paribas

Key Points

• Spotify Technology has been upgraded to a "strong-buy" rating by BNP Paribas amidst positive analyst sentiment surrounding the stock.
• The company reported a quarterly EPS of $(0.42), missing estimates, but generated $4.94 billion in revenue, exceeding expectations by 10.1% year-over-year.
• Despite the earnings miss, Spotify's average analyst rating remains a "Moderate Buy" with a consensus price target of $726.84.

BNP Paribas upgraded shares of Spotify Technology (NYSE:SPOT - Free Report) to a strong-buy rating in a research report sent to investors on Tuesday morning,Zacks.com reports.

A number of other equities analysts have also issued reports on the company. Barclays decreased their price objective on Spotify Technology from $800.00 to $750.00 and set an "overweight" rating for the company in a report on Wednesday, July 30th. Guggenheim reaffirmed a "buy" rating and set a $850.00 price target on shares of Spotify Technology in a research note on Wednesday, September 3rd. JPMorgan Chase & Co. increased their price target on Spotify Technology from $730.00 to $780.00 and gave the company an "overweight" rating in a research note on Friday, July 11th. KeyCorp decreased their price target on Spotify Technology from $860.00 to $830.00 and set an "overweight" rating for the company in a research note on Wednesday, July 30th. Finally, The Goldman Sachs Group increased their price target on Spotify Technology from $680.00 to $775.00 and gave the company a "buy" rating in a research note on Wednesday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, Spotify Technology presently has an average rating of "Moderate Buy" and an average target price of $726.84.

Spotify Technology Price Performance

SPOT stock traded up $26.12 on Tuesday, reaching $733.31. The company's stock had a trading volume of 2,514,075 shares, compared to its average volume of 1,189,479. Spotify Technology has a 52 week low of $348.96 and a 52 week high of $785.00. The company has a market capitalization of $150.12 billion, a P/E ratio of 177.99, a price-to-earnings-growth ratio of 3.04 and a beta of 1.71. The firm has a fifty day moving average of $692.68 and a two-hundred day moving average of $651.96.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings data on Tuesday, July 29th. The company reported ($0.42) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.00 by ($2.42). Spotify Technology had a return on equity of 13.67% and a net margin of 4.76%.The business had revenue of $4.94 billion during the quarter, compared to the consensus estimate of $4.29 billion. During the same period last year, the company 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 analysts expect that Spotify Technology will post 10.3 EPS for the current fiscal year.

Institutional Trading of Spotify Technology

A number of hedge funds have recently modified their holdings of the business. State Street Corp lifted its holdings in shares of Spotify Technology by 1.7% in the second quarter. State Street Corp now owns 4,574,228 shares of the company's stock valued at $3,509,988,000 after purchasing an additional 74,256 shares in the last quarter. Jennison Associates LLC lifted its holdings in shares of Spotify Technology by 42.3% in the first quarter. Jennison Associates LLC now owns 4,247,940 shares of the company's stock valued at $2,336,494,000 after purchasing an additional 1,262,614 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in shares of Spotify Technology by 3.3% in the first quarter. Massachusetts Financial Services Co. MA now owns 3,526,988 shares of the company's stock valued at $1,939,949,000 after purchasing an additional 112,553 shares in the last quarter. Fisher Asset Management LLC lifted its holdings in shares of Spotify Technology by 22.7% in the second quarter. Fisher Asset Management LLC now owns 2,489,013 shares of the company's stock valued at $1,909,920,000 after purchasing an additional 460,115 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its holdings in shares of Spotify Technology by 1,151.0% during the first quarter. Goldman Sachs Group Inc. now owns 1,740,803 shares of the company's stock worth $957,494,000 after acquiring an additional 1,601,653 shares in the last quarter. Hedge funds and other institutional investors own 84.09% of the company's stock.

Spotify Technology Company Profile

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.