Spotify Technology’s (SPOT) “Hold” Rating Reiterated at TD Cowen

TD Cowen reissued their hold rating on shares of Spotify Technology (NYSE:SPOT) in a research note issued to investors on Friday morning,Benzinga reports. They currently have a $525.00 target price on the stock.

Several other brokerages also recently commented on SPOT. Wells Fargo & Company cut their price objective on shares of Spotify Technology from $600.00 to $570.00 and set an “overweight” rating on the stock in a research report on Thursday, July 9th. UBS Group reduced their price objective on shares of Spotify Technology from $690.00 to $675.00 and set a “buy” rating for the company in a research note on Monday, October 5th. Guggenheim lifted their target price on shares of Spotify Technology from $575.00 to $650.00 and gave the stock a “buy” rating in a report on Friday. Argus reiterated a “buy” rating and issued a $600.00 target price on shares of Spotify Technology in a research note on Thursday, August 13th. Finally, Stonex Financia downgraded shares of Spotify Technology from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, October 14th. One analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $620.07.

Spotify Technology Price Performance

NYSE:SPOT opened at $583.84 on Friday. The firm’s 50-day moving average price is $526.60 and its 200-day moving average price is $497.97. The company has a market capitalization of $120.20 billion, a PE ratio of 38.71, a P/E/G ratio of 1.81 and a beta of 1.61. Spotify Technology has a 1-year low of $405.00 and a 1-year high of $676.67.

Spotify Technology (NYSE:SPOT) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.16 by ($0.13). Spotify Technology had a return on equity of 35.64% and a net margin of 15.74%. The business had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.47 billion. During the same quarter in the previous year, the business earned ($0.42) earnings per share. The firm’s revenue was up 13.9% compared to the same quarter last year. Equities analysts anticipate that Spotify Technology will post 13.62 EPS for the current fiscal year.

Insider Activity

In other news, CEO Gustav Söderström sold 20,913 shares of the company’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $544.19, for a total transaction 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. This represents a 51.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the completion of the transaction, the chief executive officer owned 66,773 shares in the company, valued at $33,526,723.30. This trade represents a 7.53% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 68,092 shares of company stock worth $35,762,410 over the last three months. Insiders own 0.40% of the company’s stock.

Hedge Funds Weigh In On Spotify Technology

Institutional investors and hedge funds have recently made changes to their positions in the business. Janus Henderson Group PLC grew its position in Spotify Technology by 20.1% during the first quarter. Janus Henderson Group PLC now owns 1,711,015 shares of the company’s stock valued at $829,641,000 after buying an additional 286,844 shares during the period. Tiger Global Management LLC increased its holdings in Spotify Technology by 25.3% during the first quarter. Tiger Global Management LLC now owns 1,580,761 shares of the company’s stock valued at $766,527,000 after buying an additional 319,300 shares during the last quarter. Amundi increased its holdings in Spotify Technology by 20.0% during the first quarter. Amundi now owns 1,104,484 shares of the company’s stock valued at $535,575,000 after buying an additional 183,994 shares during the last quarter. Principal Financial Group Inc. increased its holdings in Spotify Technology by 53.4% during the first quarter. Principal Financial Group Inc. now owns 989,667 shares of the company’s stock valued at $479,899,000 after buying an additional 344,471 shares during the last quarter. Finally, Sei Investments Co. raised its position in Spotify Technology by 1.8% in the first quarter. Sei Investments Co. now owns 749,495 shares of the company’s stock worth $363,415,000 after acquiring an additional 13,381 shares during the period. Hedge funds and other institutional investors 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: Spotify reported 306 million premium subscribers in the third quarter, up 9% year over year and 1 million above its guidance. Monthly active users rose 11% to 788 million, with growth across all regions. Spotify Stock Jumps as Subscriber Growth Beats Expectations
• Positive Sentiment: Revenue increased roughly 16% year over year to about €4.97 billion, while gross margin expanded 140 basis points to 33% and operating income exceeded company guidance. Spotify expects fourth-quarter operating profit above Wall Street expectations and projects revenue of approximately €6.0 billion. Spotify forecasts fourth-quarter profit above estimates on AI bets
• Positive Sentiment: Management highlighted AI-powered personalization, including its “taste model,” as a way to increase listening, reduce churn and support pricing power. It also expects moderating expenses and continued margin expansion, with long-term targets of more than 20% operating margin and 35%–40% gross margin by 2030. Spotify Soars After Earnings as the Company Touts AI Benefits and Moderating Costs
• Positive Sentiment: Several analysts raised their targets following the results. Morgan Stanley and JPMorgan lifted targets to $700 with overweight ratings, while Wells Fargo, Barclays, Oppenheimer and Guggenheim also raised targets to $650–$660. Spotify Analysts Raise Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Spotify’s headline results were mixed: quarterly EPS of roughly $2.78–$2.85 missed consensus near $3.10–$3.18, while revenue was slightly below estimates. Piper Sandler maintained a neutral rating with a $580 target, and Cantor Fitzgerald maintained neutral at $550.
• Negative Sentiment: TD Cowen reaffirmed a hold rating with a $525 price target, and some newly raised targets remain below the current market valuation, signaling concerns that much of the subscriber and AI optimism may already be reflected in SPOT shares.

About Spotify Technology

Spotify Technology SA is an audio streaming company that operates the Spotify platform, offering users access to music, podcasts and audiobooks through internet-connected devices. Its catalog includes licensed recordings from music labels and artists, as well as podcasts and other audio content from creators and publishers.

Spotify provides both an ad-supported service and subscription-based Premium plans. Premium subscribers generally receive ad-free listening and additional features, while the advertising-supported service allows users to access content without a paid subscription.