Spotify Hits Historic $400 Share Price as Analysts Raise Target Ahead of Q3 Earnings

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November 18, 2024 at 12:55 AM

Spotify's stock has surpassed $400 per share for the first time in company history, setting a new record ahead of its Q3 2024 earnings report.

Spotify stock price chart

This milestone comes after a significant transformation in Spotify's business strategy, shifting from aggressive expansion to prioritizing operational efficiency and profitability under CEO Daniel Ek's leadership and a new CFO in 2024.

Several prominent analysts have issued bullish forecasts:

Morgan Stanley: $430 target price
Deutsche Bank: $440 target price
Rosenblatt Securities: $438 target price
KeyBanc Capital Markets: $490 target price

The optimistic outlook is driven by:

Expected subscriber growth
Expansion in audiobooks
Potential price increases in emerging markets
Improved operational efficiency
Sustained focus on profitability

Spotify's market capitalization has reached approximately $80 billion, surpassing Universal Music Group by $34 billion at current exchange rates. The company's upcoming Q3 earnings report on November 12th will be crucial in determining whether these bullish forecasts materialize.

The Motley Fool analyst Travis Hoium suggests Spotify has "10x potential" and will likely outperform the market over the next five years. This represents a dramatic turnaround from 2022, when the stock had fallen to the low-$70s.