Spotify Stock Falls 5% as Wall Street Analysts Split on Q2 Earnings Expectations
Spotify stock (NYSE: SPOT) has experienced a nearly 5% decline over the past week, trading at $301.08 per share despite showing strong year-to-date growth of 59.5% and an 87% increase from July 2023.
Spotify stock price line chart
Analysts are split on Spotify's future prospects ahead of their Q2 earnings release:
Bearish Outlook:
- Redburn Atlantic's Agnieszka Pustula set a $230 target price with a sell rating
- Concerns include ambitious growth expectations ($100B annual revenue by 2032)
- Increasing consumer pressure and competition from Apple Music, Amazon Music, and YouTube Music
Bullish Perspective:
- KeyBanc's Justin Patterson maintains an overweight rating with a $410 target price
- Jefferies issued a buy rating with a $385 target price
Key Focus Areas:
- Revenue growth and spending reduction
- Podcast monetization
- Ad-supported listening optimization
- Potential implementation of fees for free accounts in developed markets
The company will release its Q2 financials on the 23rd, providing clearer insights into its financial trajectory and strategic initiatives.
Businessman checking phone with charts
Concert stage with colorful lights
Man presenting Spotify Now Playing feature
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