Spotify Stock Falls 5% as Wall Street Analysts Split on Streaming Giant's Future
Spotify stock (NYSE: SPOT) has experienced a nearly 5% decline in the past week, currently trading at $301.08 per share, despite showing strong year-to-date gains of 59.5% and an 87% increase since July 2023.
Spotify stock price line chart
Analysts are divided on Spotify's future outlook ahead of their Q2 earnings release:
Bearish View:
- Redburn Atlantic's Agnieszka Pustula set a sell rating with a $230 target price
- Concerns about ambitious growth expectations ($100 billion annual revenue by 2032)
- Cited consumer pressure and impact of price increases
- Growing competition from Apple Music, Amazon Music, and YouTube Music bundles
Bullish View:
- KeyBanc's Justin Patterson maintained overweight rating with $410 target price
- Jefferies issued buy rating with $385 target price (up from $242)
Key Focus Areas for Spotify:
- Revenue growth and spending reduction
- Podcast monetization
- User interaction improvements
- Ad-supported listening optimization
- Potential implementation of fees for free accounts in developed markets
Spotify will release its Q2 financial results on the 23rd, providing clearer insights into the company's direction and performance metrics.
Businessman checking phone with charts
Man presenting Spotify Now Playing feature
Concert stage with colorful lights
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