Stock Price & Analysis

Buy SPOT stock as it approaches a favorable buy point with strong fundamentals. Sell SPOT stock due to increased competition and institutional selling.

Spotify's stock price is predicted to reach $675 by the end of 2025, driven by strong subscriber growth and improving margins. Analysts highlight the company's execution and pricing power as key catalysts for this upside.

The S1 support level for SPOT Stock is $539.92 ,The R1 resistant level for SPOT Stock is $612.8.

As of the end of day on 2025-04-01, the price of SPOT Stock was $553.5.

The target price for SPOT Stock according to analyst rating is 674.35, with the highest price target at 740.00 and the lowest at 457.00. Analysts have a Moderate Buy rating on SPOT Stock overall.

The market cap of SPOT is $112.9B.

Analysis and Insights

1. Valuation Metrics: Spotify's EV/EBITDA ratio of 54.78 and PS ratio of 5.42 suggest a premium valuation compared to industry peers, indicating high growth expectations baked into the price.

2. Revenue Growth: Spotify's Q4 revenue of €4.242 billion reflects strong growth, up from €3.986 billion in Q3, supported by increasing subscriber numbers and diversification into new markets.

3. Profitability: The company's improving net income, with Q4 at €367 million, and expanding gross margin of 31.09%, shows operational efficiency and scalability.

4. Debt Levels: Spotify's debt-to-equity ratio of 37.57% raises concerns about financial leverage, though manageable given its growth trajectory.

5. Market Sentiment: Analysts remain bullish, with a 1-year price target of $636.15, reflecting confidence in its leadership in audio streaming and cultural impact.

Conclusion:

Spotify's high valuation metrics and debt levels suggest caution, but its strong revenue growth and improving profitability justify its premium. The stock may be overvalued if growth slows, but current trends support its price.

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.

The price prediction for SPOT stock by 2030 is approximately $800. This forecast is based on strong subscriber growth, improving margins, and Spotify's leadership in audio streaming, supported by analyst upgrades and price target increases from firms like Goldman Sachs, Morgan Stanley, and BofA.

SPOT has a total of 9123 employees.