Equities Analysts Issue Forecasts for SPOT FY2027 Earnings

Spotify Technology (NYSE:SPOT) – Research analysts at Erste Group Bank lowered their FY2027 EPS estimates for shares of Spotify Technology in a report released on Friday, September 18th. Erste Group Bank analyst S. Lingnau now anticipates that the company will post earnings of $17.52 per share for the year, down from their previous forecast of $17.74. The consensus estimate for Spotify Technology’s current full-year earnings is $14.19 per share.

Spotify Technology (NYSE:SPOT) last released its earnings results on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing analysts’ consensus estimates of $3.16 by ($0.13). The business had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.47 billion. Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The firm’s revenue for the quarter was up 13.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.42) earnings per share.

Other equities research analysts have also issued reports about the company. Cantor Fitzgerald raised their price objective on Spotify Technology from $510.00 to $530.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 5th. Weiss Ratings raised Spotify Technology from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, August 26th. Benchmark reduced their target price on Spotify Technology from $695.00 to $650.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. Argus reiterated a “buy” rating and issued a $600.00 price target on shares of Spotify Technology in a research report on Thursday, August 13th. Finally, Rosenblatt Securities dropped their price target on Spotify Technology from $531.00 to $527.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $594.50.

Spotify Technology Stock Performance

Spotify Technology stock opened at $511.15 on Tuesday. The firm has a market cap of $105.24 billion, a price-to-earnings ratio of 31.83, a price-to-earnings-growth ratio of 1.49 and a beta of 1.59. Spotify Technology has a 1 year low of $405.00 and a 1 year high of $740.00. The firm’s 50 day moving average price is $515.94 and its two-hundred day moving average price is $495.28.

Institutional Investors Weigh In On Spotify Technology

Several hedge funds have recently bought and sold shares of SPOT. Norges Bank purchased a new position in Spotify Technology during the 4th quarter valued at about $711,460,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Spotify Technology by 1,382.3% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,247,182 shares of the company’s stock worth $724,251,000 after purchasing an additional 1,163,045 shares in the last quarter. National Pension Service acquired a new stake in shares of Spotify Technology during the fourth quarter worth approximately $316,278,000. Cantillon Capital Management LLC acquired a new stake in shares of Spotify Technology during the first quarter worth approximately $213,047,000. Finally, Southpoint Capital Advisors LP purchased a new position in Spotify Technology during the first quarter valued at approximately $193,964,000. 84.09% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Spotify Technology

In other news, CEO Alex Norström sold 5,436 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total value of $2,729,415.60. Following the completion of the sale, the chief executive officer owned 66,773 shares in the company, valued at $33,526,723.30. This represents a 7.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,913 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $544.19, for a total value of $11,380,645.47. Following the completion of the sale, the chief executive officer owned 20,025 shares of the company’s stock, valued at $10,897,404.75. The trade was a 51.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 73,451 shares of company stock worth $37,258,896. Company insiders own 0.40% of the company’s stock.

More Spotify Technology News

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

• Positive Sentiment: Spotify launched its AI-powered Taste Profile feature for U.S. Premium subscribers, allowing users to influence the music recommendations shown in their Home feed. The feature could improve engagement, satisfaction and retention by giving listeners more control over personalization. Spotify’s is giving you the keys to its recommendation algorithm with US launch of Taste Profile
• Positive Sentiment: Spotify’s second-quarter gross margin expanded to 33.4%, as Premium revenue growth outpaced music-related costs and advertising improvements supported operating profitability. Continued margin expansion could provide a stronger foundation for earnings growth. Gross-Margin Expansion is a Key Driver of SPOT’s Profitability
• Neutral Sentiment: The Taste Profile rollout is strategically favorable, but the articles do not identify an immediate revenue or earnings impact. Its financial benefit will depend on whether better recommendations increase listening time, Premium conversions or subscriber retention.
• Negative Sentiment: SPOT recently fell below its 200-day moving average, a trendline often viewed as a bearish signal. The stock was approaching its fifth loss in six sessions, indicating continued technical selling pressure. Spotify Stock Breaches Key Trendline After Recent Slide
• Negative Sentiment: Erste Group Bank reduced its FY2027 earnings-per-share estimate for Spotify to $17.52 from $17.74. Although the revised forecast remains above the current-year consensus estimate of $14.19, the downward revision may weigh on sentiment.

About Spotify Technology

Spotify Technology SA is a Luxembourg-based audio streaming company that operates the Spotify platform. The service gives users access to a broad catalog of music, podcasts and audiobooks, with features for searching, discovering, creating and sharing audio content across connected devices.

Spotify offers an ad-supported service at no subscription cost and paid Premium plans that provide additional features, including ad-free listening and offline playback. The company generates revenue primarily through subscriptions and advertising, while working with music labels, publishers, podcast creators and other rights holders to distribute content.

Founded in Stockholm in 2006 by Daniel Ek and Martin Lorentzon, Spotify launched its streaming service in 2008.