SPOT Should I Buy
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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. The company's strong financial performance, growing user base, positive analyst sentiment, and investment in AI-driven growth make it an attractive long-term investment opportunity.
The MACD histogram is positive at 3.263, indicating bullish momentum, though it is contracting. RSI is neutral at 49.614, and moving averages are converging, suggesting no clear trend. The stock is trading near its pivot level of 510.32, with key resistance at 539.081 and support at 481.559.
Spotify is approaching 1 billion monthly active users, highlighting strong growth potential.
The company's net income surged by 94% in 2025, driven by increased revenue and reduced operating expenses.
Analysts expect mid-teens annual revenue growth and 20%-plus operating margins, supported by AI-driven product improvements.
Positive sentiment from analysts with multiple Overweight and Outperform ratings.
Some analysts have lowered price targets due to concerns about higher operating expenses for AI features and potential risks in the media sector.
The Motley Fool Stock Advisor has not included Spotify in its current list of top investment stocks.
In Q4 2025, Spotify's revenue increased by 6.81% YoY to $4.53 billion. Net income surged by 219.89% YoY to $1.17 billion, and EPS grew by 219.43% YoY to 5.59. Gross margin improved to 33.08%, up 2.57% YoY, showcasing strong financial growth and operational efficiency.
Analysts maintain a largely positive outlook on Spotify. KeyBanc raised its price target to $745, citing strong growth potential and AI-driven improvements. Other firms like Morgan Stanley and Barclays have slightly lowered price targets but retain Overweight ratings. The consensus reflects optimism about Spotify's growth trajectory and market position.
