Stock Price & Analysis

Based on the recent price action and market data, here's a concise analysis for SPOT:

Technical Analysis

• Strong upward momentum with price reaching new highs at $256.10 on Friday (Feb 23, 2025)
• Trading well above key moving averages, indicating bullish trend strength
• RSI at 58.78 suggests room for further upside despite recent gains
• MACD showing positive momentum with reading of 35.47

Fundamental Factors

• Strong Q4 2024 performance with first full-year profit
• Monthly active users grew to 675 million, with 263 million paying subscribers
• Analysts maintain bullish outlook with multiple price target raises:
  • BofA raised target to $700
  • Pivotal Research increased to $725
  • Evercore ISI maintains Buy rating with $500 target

Market Sentiment

• Remains one of JP Morgan's "4 Best Ideas in 2025"
• Strong subscriber growth and improving margins keeping analysts bullish
• Some concerns about valuation after 180% gain over past year

Recommendation Based on strong fundamentals, positive technical momentum, and continued analyst support, SPOT appears positioned for further gains. However, given the recent sharp rally and elevated valuation metrics, consider scaling into any new positions on pullbacks rather than chasing at current levels.

Based on the provided data and recent analyst reports, here's a price prediction analysis for Spotify (SPOT) stock in 2025:

Price Target Analysis: SPOT is expected to reach $675-700 by end of 2025, representing a ~11-15% upside from current levels, supported by:

1. Strong Growth Fundamentals:

• Revenue growth projected at 15.5% for 2025
• Operating margin expansion of 480 bps expected in 2025
• Free cash flow per share forecasted to exceed $20

2. Analyst Consensus:

• Goldman Sachs raised target to $695
• Morgan Stanley increased target to $670
• Canaccord Genuity upgraded target to $700

Key Growth Drivers: The price target is supported by Spotify's:

• Continued user base expansion with 10% average subscriber growth
• Pricing power enabling mid-single-digit ARPU growth
• Gross margin improvements of ~130 bps expected in 2025

The S1 support level for SPOT Stock is $588.53 ,The R1 resistant level for SPOT Stock is $647.43.

As of the end of day on 2025-02-26, the price of SPOT Stock was $594.92.

The target price for SPOT Stock according to analyst rating is 677.38, with the highest price target at 730.00 and the lowest at 457.00. Analysts have a Moderate Buy rating on SPOT Stock overall.

The market cap of SPOT is $120.0B.

Based on the provided data and recent market analysis, I'll evaluate if SPOT is currently overvalued through multiple perspectives:

Technical Analysis

The stock has shown strong momentum, rising from around $100 in early 2023 to over $600 currently. The recent price action shows:

• Strong upward trend with higher highs and higher lows
• Trading well above major moving averages
• RSI at 58.78 indicates moderate momentum without being extremely overbought

Fundamental Valuation

Current valuation metrics show:

• P/E ratio: 109x (based on 2024 EPS of $5.74)
• Forward P/E: 57.2x (based on projected 2025 EPS of $10.82)
• P/S ratio: 7.8x (all-time high, double its historical average of 3.9x)

Growth & Profitability Analysis

• Revenue grew 18% YoY in 2024 to $16.3B, accelerating from 13% in 2023
• First profitable year with $1.2B net income in 2024, compared to $554M loss in 2023
• Monthly active users reached 675M, with 263M premium subscribers
• Operating expenses reduced by 12% in 2024 while maintaining growth

Analyst Perspectives

• Recent price targets from major analysts:
  • BofA: $700 (Buy)
  • Pivotal: $725 (Buy)
  • TD Cowen: Cautious with Hold rating
  • Goldman Sachs: $550 (Buy)
  • JP Morgan: Overweight

Conclusion

While SPOT appears expensive by traditional metrics, several factors suggest the premium valuation might be justified:

1. Demonstrated ability to grow revenue while cutting costs
2. First year of profitability with strong margin expansion
3. Market leadership in audio streaming with expanding content offerings
4. CEO's long-term revenue target of $100B by 2032

However, risks include:

• Historically high valuation multiples
• Potential technology disruption
• AI-generated content risks

Recommendation: While the long-term growth story remains compelling, current valuations suggest waiting for a pullback before establishing new positions. Existing holders might consider taking partial profits given the 180% gain over the past year.

Spotify Technology SA a Luxembourg-based company, which offers digital music-streaming services. The Company enables users to discover new releases, which includes the latest singles and albums; playlists, which includes ready-made playlists put together by music fans and experts, and over millions of songs so that users can play their favorites, discover new tracks and build a personalized collection. Its users can either select Spotify Free, which includes only shuffle play or Spotify Premium, which encompasses a range of features, such as shuffle play, advertisement free, unlimited skips, listen offline, play any track and audio. The Company operates through a number of subsidiaries, including Spotify LTD and is present in over 20 countries. Its service offers a music listening experience without commercial breaks.

Based on the provided data and recent analyst reports, here's a price prediction for Spotify (SPOT) stock in 2030:

Spotify stock is projected to reach $950-1000 by 2030, driven by three key factors: continued subscriber growth at 10-15% CAGR, expanding operating margins approaching 20% by 2027, and successful monetization of new products including video podcasts and audiobooks.

The company's strong execution in achieving its first full-year profit in 2024, combined with its dominant market position and pricing power, supports this bullish long-term outlook. Morgan Stanley analysts project mid-teens revenue growth through 2027 with gross margins reaching 34-35%, establishing a solid foundation for sustained growth toward 2030.

SPOT has a total of 9123 employees.