Morgan Stanley and others are bullish on Spotify stock ahead of the company’s Q1 2025 earnings report. Photo Credit: Sven Piper
As things stand, Spotify stock is hovering around $568 per share, reflecting the mentioned boost from 2025’s beginning and a 109% surge from the same point in April 2024. Nevertheless, SPOT is down on the month and remains $84 beneath its 52-week high of almost $653 per share.
In other words, it remains to be seen whether the stock will continue ascending or level out at a more modest (but still substantial) value. And multiple analysts are opting to weigh in ahead of Spotify’s April 29th earnings release.
Citing factors including the company’s ongoing subscriber growth and price increases, Wolfe Research is banking on the former outcome. The equity-research firm has now settled on a $660 target for SPOT; on top of representing another record high, that per-share price would render Spotify an over $135 billion company.
Separate forecasts are even more bullish; UBS is running with a $690 SPOT target, for instance. And some have been long Spotify for a while – including when shares were trading for closer to $70 a pop in the not-so-distant past.
Different analysts yet are urging pricing caution; KeyBanc recently maintained its overweight rating for SPOT while simultaneously reducing its target from $675 to $625. And Redburn Atlantic’s neutral SPOT rating brought with it a relatively modest $545 target.
First, investors are evidently unbothered by the roughly $1.8 billion in Spotify stock that execs and board members have now sold. A substantial portion of the SPOT selloff arrived in 2024 – though the involved parties could have made more cash had they waited to part with their holdings.
Next, notwithstanding all the aggressive SPOT targets and ultra-enthusiastic analyst assessments, the ever-fickle market’s presumably on the lookout for a handful of Q1 2025 performance particulars. Chief among the latter are profitability and subscriber gains.
Behind this point, Spotify hasn’t exactly reinvented the wheel since November 2022, when its per-share stock price was, as highlighted, in the $70s. However, it has prioritized a leaner operation (including dialed-back spending on questionable investments), price bumps, bolstered advertising initiatives, and a multifaceted diversification.
Near term, SPOT’s showing seemingly hinges on paid-subscriber movements and staying in the black. But throughout the remainder of 2025 and beyond, heightened audiobook revenue wouldn’t hurt, nor would a bit of early payoff for a rapid-fire video buildout.
Additionally, managing to fuel consistent advertising growth would be a big plus for Spotify, which will probably see a revenue upside if it can, in fact, get Super-Premium off the ground during 2025.
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Spotify Stock Receives Bullish Forecasts Ahead of Q1 '25 Earnings – Digital Music News
