Spotify Stock Hits Historic $400 Mark as Analysts Raise Price Targets Before Q3 Earnings
Spotify stock has surpassed $400 per share for the first time in company history, reaching a record high ahead of its Q3 2024 earnings report.
Spotify stock price chart
This milestone comes after a significant transformation in Spotify's business strategy, shifting from aggressive expansion to prioritizing operational efficiency and profitability under CEO Daniel Ek's leadership. The company's market cap has now exceeded $80 billion, surpassing Universal Music Group by approximately $34 billion.
Multiple analysts have issued bullish forecasts for Spotify stock:
- Morgan Stanley: $430 target price
- Deutsche Bank: $440 target price
- Rosenblatt Securities: $438 target price
- KeyBanc Capital Markets: $490 target price
Deutsche Bank's optimistic outlook is based on:
- Expected subscriber growth
- Expansion in audiobooks
- Potential price increases in emerging markets
The Motley Fool analyst Travis Hoium suggests Spotify could have "10x potential" and is likely to outperform the market over the next five years.
The upcoming Q3 earnings report on November 12th will be crucial, as investors focus on subscription figures and profit margins to validate the company's renewed emphasis on profitability.
This marks a significant turnaround from early 2021, when Spotify last approached the $400 mark before declining to the low-$70s in the following year. The company's strategic shift from aggressive expansion to profitability-focused operations has driven its gradual recovery through 2023 and into 2024.
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