Spotify stock (NYSE: SPOT) finished at an even $647 per share on Tuesday, August 5th.
After rebounding thanks to yesterday’s price-hikes announcement, Spotify stock (NYSE: SPOT) dipped beneath $650 per share today. Nevertheless, analysts remain generally enthusiastic about SPOT’s outlook.
That rebound refers specifically to a peak of $670 per share – up substantially from SPOT’s $620 or so post-Q2-earnings low. As we reported, the DSP disclosed solid user growth, a Premium ARPU decrease, and a net loss for the three-month stretch.
Said loss ended a profitability streak, and Spotify issued a relatively measured third-quarter forecast to boot. Bearing all this in mind, the company went ahead and kicked off the current week by announcing pricing bumps for a variety of markets outside North America.
And while time will reveal the outcome there – the obvious potential upside being an ARPU boost, the possible downside being accelerated churn, of course – the post-announcement rally proved short lived. At the final bell on Tuesday the 5th, Spotify finished at $647 per share; the price, it should be noted, is nearly double SPOT’s value at the same point in 2024.
Notwithstanding the massive year-over-year jump – execs previously capitalized on SPOT’s momentum with a mountain of stock sales – the conversation is naturally shifting to Spotify stock’s outlook for the remainder of 2025 and beyond.
As mentioned, analysts are largely bullish – even if there are major differences between their positions.
Rosenblatt, for instance, settled on a neutral rating and a $679 target for Spotify stock. Phillip Securities, for its part, technically upgraded its SPOT rating from reduce to neutral, albeit with a reiterated target of $600.
Though that implies a forthcoming slip for Spotify stock, Wells Fargo evidently believes there’s plenty of room for share-price growth. The firm recently downplayed ARPU worries, underscored Spotify’s subscriber gains, and set a $750 target while reiterating an overweight rating.
Some are more enthusiastic than that. Simultaneously acknowledging the churn concerns and revenue benefits of price increases, Wolfe Research attached an outperform rating and a $790 target to Spotify stock. Additionally, Morgan Stanley maintained a buy rating with an $800 target.
Needless to say, there’s quite a gap between per-share prices of $600 and $800. Another obvious-but-important point: Spotify’s stock showing and financials involve several moving parts. Profitability, advertising expansions, video monetization, superfan tiers, upgraded audio, and more all come to mind.
Even so, logic suggests that the market won’t be thrilled if the platform begins bleeding subs after raising prices, and it’ll be worth tracking the metric as well as ARPU moving forward.
Content shared from www.digitalmusicnews.com.