Should I Buy SPOT? SPOT 2026 Analysis

Should You Buy Spotify Technology SA (SPOT) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

508.700

1 Day change

-0.59%

52 Week Range

785.000

Analysis Updated At

2026/01/26

Spotify Technology SA (SPOT) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. Despite short-term technical weakness, the company's strong financial performance, positive analyst sentiment, and long-term growth catalysts make it a compelling investment opportunity.

Technical Analysis

The technical indicators show a bearish trend with MACD below 0 and negatively contracting, RSI at 40.613 in the neutral zone, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). The stock is trading below the pivot level of 520.91, with key support at 496.826 and resistance at 544.993.

Options Data

Neutral

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Goldman Sachs upgraded Spotify to Buy, citing long-term growth potential and undervaluation.
Strong financial performance in Q3 2025, with revenue up 7.12% YoY, net income up 199.67% YoY, and EPS up 190.34% YoY.
Launch of new 'prompted playlist' feature, enhancing user experience.
Analysts expect advertising revenue to accelerate in 2026 and beyond.

Neutral/Negative Catalysts

Bearish technical indicators suggest short-term weakness.
Recent price target reductions by multiple analysts, reflecting cautious sentiment.
No significant hedge fund or insider trading trends.

Financial Performance

In Q3 2025, Spotify reported strong financial growth with revenue increasing to $4.27 billion (+7.12% YoY), net income surging to $899 million (+199.67% YoY), EPS rising to 4.21 (+190.34% YoY), and gross margin improving to 31.62% (+1.70% YoY).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analyst sentiment is positive, with multiple Buy ratings and price targets ranging from $615 to $800. Goldman Sachs recently upgraded the stock to Buy, citing undervaluation and long-term growth potential. However, some analysts have lowered price targets due to tactical concerns and modestly lower growth estimates.

21 Analyst Rating

Wall Street analysts forecast SPOT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPOT is 750.79 USD with a low forecast of 525 USD and a high forecast of 900 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

15 Buy

6 Hold

0 Sell

Moderate Buy

Current: 511.700

Low

525

Averages

750.79

High

900

Current: 511.700

Low

525

Averages

750.79

High

900

MoffettNathanson

Neutral

initiated

$487

AI Analysis

2026-01-27

New

Reason

MoffettNathanson

Price Target

$487

AI Analysis

2026-01-27

New

initiated

Neutral

Reason

MoffettNathanson initiated coverage of Spotify with a Neutral rating and $487 price target. Fifteen years into the penetration of music streaming, the market, at least in developed markets, is largely saturated and the subscriber growth chapter of the story is "drawing to a close," says the analyst, who sees the next chapter being "all about pricing." The firm thinks "there's plenty of room for pricing growth," the analyst added.

Goldman Sachs

Neutral -> Buy

upgrade

2026-01-22

Reason

Goldman Sachs

Price Target

2026-01-22

upgrade

Neutral -> Buy

Reason

Goldman Sachs upgraded Spotify to Buy from Neutral.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for SPOT

Unlock Now

SPOT Should I Buy

SPOT Should I Buy

Should You Buy Spotify Technology SA (SPOT) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

People Also Watch