Spotify Stock Falls 5% as Wall Street Analysts Split on Q2 Earnings Outlook
Spotify stock (NYSE: SPOT) has experienced a nearly 5% decline in the past week, currently trading at $301.08 per share, despite showing strong year-to-date growth of 59.5% and an 87% increase from July 2023.
Spotify stock price line chart
Analysts are divided on Spotify's future performance ahead of their Q2 earnings release:
Bearish Outlook:
- Redburn Atlantic's Agnieszka Pustula set a $230 target price with a sell rating
- Concerns include ambitious growth expectations ($100 billion annual revenue by 2032)
- Challenges from consumer pressure and price increases
- Growing competition from Apple Music, Amazon Music, and YouTube Music bundles
Bullish Perspective:
- KeyBanc analyst Justin Patterson maintains an overweight rating with a $410 target price
- Jefferies issued a buy rating with a $385 target price
Key Focus Areas for Spotify:
- Revenue growth and spending reduction
- Podcast monetization
- User interaction improvements
- Ad-supported listening expansion
- Potential implementation of fees for free accounts in developed markets
The company will release its Q2 financials on the 23rd, providing clearer insights into its financial trajectory and strategic initiatives.
Businessman checking phone with charts
Man presenting Spotify Now Playing feature
Concert stage with colorful lights
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