Spotify Technology (NYSE:SPOT) Downgraded by Zacks Research to Strong Sell

Zacks Research lowered shares of Spotify Technology (NYSE:SPOT) from a hold rating to a strong sell rating in a research note issued to investors on Thursday,Zacks reports.

A number of other analysts also recently weighed in on the stock. Guggenheim upped their target price on shares of Spotify Technology from $575.00 to $650.00 and gave the stock a “buy” rating in a research report on Friday. JPMorgan Chase & Co. lifted their price target on shares of Spotify Technology from $650.00 to $700.00 and gave the company an “overweight” rating in a research report on Friday. Argus reissued a “buy” rating and set a $600.00 price target on shares of Spotify Technology in a research report on Thursday, August 13th. Phillip Securities raised shares of Spotify Technology to a “buy” rating and set a $650.00 price objective on the stock in a research note on Tuesday, August 11th. Finally, Wells Fargo & Company upped their price objective on shares of Spotify Technology from $570.00 to $660.00 and gave the stock an “overweight” rating in a report on Friday. One equities research 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $620.07.

Spotify Technology Stock Up 0.0%

NYSE:SPOT opened at $583.84 on Thursday. Spotify Technology has a twelve month low of $405.00 and a twelve month high of $676.67. The stock has a market cap of $120.20 billion, a P/E ratio of 38.72, a price-to-earnings-growth ratio of 1.81 and a beta of 1.61. The firm’s fifty day simple moving average is $526.60 and its 200 day simple moving average is $497.87.

Spotify Technology (NYSE:SPOT) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing the consensus estimate of $3.16 by ($0.13). The company had revenue of $5.45 billion during the quarter, compared to analysts’ expectations of $5.47 billion. Spotify Technology had a return on equity of 36.15% and a net margin of 15.74%. The business’s quarterly revenue was up 13.9% on a year-over-year basis. During the same quarter last year, the business earned ($0.42) earnings per share. On average, analysts expect that Spotify Technology will post 13.64 EPS for the current fiscal year.

Insider Transactions at Spotify Technology

In related news, CEO Alex Norström sold 5,436 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the sale, the chief executive officer directly owned 66,773 shares of the company’s stock, valued at approximately $33,526,723.30. This represents a 7.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 firm’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 sale, the chief executive officer owned 20,025 shares of the company’s stock, valued at approximately $10,897,404.75. This represents a 51.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 68,092 shares of company stock worth $35,762,410. 0.40% of the stock is currently owned by company insiders.

Institutional Trading of Spotify Technology

Institutional investors have recently added to or reduced their stakes in the business. Signaturefd LLC lifted its position in Spotify Technology by 19.8% during the 3rd quarter. Signaturefd LLC now owns 4,675 shares of the company’s stock worth $2,279,000 after acquiring an additional 773 shares during the period. Citizens Financial Group Inc. RI increased its holdings in shares of Spotify Technology by 10.0% in the third quarter. Citizens Financial Group Inc. RI now owns 2,254 shares of the company’s stock valued at $1,099,000 after purchasing an additional 205 shares during the period. Simplicity Wealth LLC increased its holdings in shares of Spotify Technology by 6.9% in the third quarter. Simplicity Wealth LLC now owns 899 shares of the company’s stock valued at $438,000 after purchasing an additional 58 shares during the period. Evergreen Capital Management LLC raised its stake in shares of Spotify Technology by 10.6% in the third quarter. Evergreen Capital Management LLC now owns 2,879 shares of the company’s stock worth $1,403,000 after purchasing an additional 276 shares during the last quarter. Finally, Gibbs Wealth Management raised its stake in shares of Spotify Technology by 42.9% in the third quarter. Gibbs Wealth Management now owns 892 shares of the company’s stock worth $435,000 after purchasing an additional 268 shares during the last quarter. 84.09% of the stock is currently owned by hedge funds and other institutional investors.

More Spotify Technology News

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.

Spotify Technology Company Profile

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.