
Spotify (SPOT) Stock Forecast & Price Target
Spotify (SPOT) Analyst Ratings
Bulls say
Spotify Technology experienced a significant increase in its financial metrics, with premium subscribers rising by 5 million to reach a total of 281 million, aligning with its guidance, while monthly active users also increased by 17 million to 713 million, surpassing expectations by 3 million. The firm's gross margin improved to 31.6%, exceeding guidance by 50 basis points, and the operating profit rose by 28% year-over-year to €582 million, surpassing estimates by nearly €100 million. Additionally, ad sales are projected to accelerate in the latter half of 2026, contributing to a solid financial outlook for the company.
Bears say
Spotify Technology has encountered challenges in its revenue growth, particularly with a decrease in ad revenue guidance for 4Q25, falling short of prior estimates, and a 5.5% decline in reported advertising revenue. User engagement metrics show concerning trends, with average revenue per user (ARPU) decelerating to an estimated 0% in 3Q25 and overall advertising growth stagnating at flat constant currency, which represents a significant drop compared to previous quarters. The company's margins face potential pressure due to rising content costs, stagnant subscription growth, and an increasingly competitive market, all of which could adversely impact Spotify's financial performance moving forward.
This aggregate rating is based on analysts' research of Spotify and is not a guaranteed prediction by Public.com or investment advice.
Spotify (SPOT) Analyst Forecast & Price Prediction
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