Is Spotify Becoming a Wall Street Darling? Multiple Analysts — Including UBS, Wells Fargo, and Zacks — Are Touting SPOT Amid Continued Profitability Push
Spotify's stock (NYSE: SPOT) is gaining significant attention from Wall Street analysts, with multiple firms expressing bullish views amid the company's renewed focus on profitability and operational efficiency.
Recent analyst endorsements have come from:
- UBS: Named SPOT top media stock for 2024
- Wells Fargo: Added Spotify to "Signature Picks List"
- Zacks Equity Research: Selected as "Bull of the Day"
Charging bull statue on Wall Street
Key Performance Indicators:
- Stock price: $336.39
- Year-to-date growth: 78%
- Year-over-year growth: 114%
Analysts' Bullish Rationale:
- Early stages of music industry monetization recovery
- Expected sustained subscriber growth in developing markets
- Improved monetization through price increases and new tiers
- Relative insulation from economic downturns
- Rapid improvements in profitability outlook
Cautionary Perspectives:
- Some analysts, including Seeking Alpha's Gary Alexander, maintain concerns about:
- Slowing user growth
- Inconsistent user trends
- High content costs
Historical Context:
- 2021: Analysts set target prices above $400 during podcast expansion
- 2022: Stock declined to $100, later dropping to $70s
- 2024: Current profitability focus driving renewed optimism
Leadership Update: Christian Luiga, former Saab CFO, is expected to join Spotify as CFO in Q3 2024, signaling continued focus on financial performance and operational efficiency.
This positive analyst sentiment comes despite ongoing streaming-growth challenges faced by major labels, highlighting Spotify's successful pivot toward operational efficiency and profitability in 2024.
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