Spotify Technology (SPOT) stock is climbing the price charts Tuesday after the Swedish audio streaming and media company reported second-quarter earnings that beat expectations.
In the three months ended June 30, SPOT's revenue increased 20% year-over-year to 3.8 billion euros, driven by subscriber gains and price increases. The company also swung to a net profit of 1.33 euros per share from a loss of 1.55 euros per share in the year-ago period.
"We keep on innovating and showing that we aren't just a great product, but increasingly also a great business," Spotify CEO Daniel Ek said in a statement. "We are doing so on a timeline that has exceeded even our own expectations. This all bodes very well for the future."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The company's revenue for the quarter fell short of analysts’ expectations, while its earnings topped expectations of 1.04 euros per share, according to MarketWatch.
Spotify also said its monthly active users (MAUs) came in at 626 million, representing an increase of 14% from the year-ago period and 2% from the prior quarter. Premium subscribers totaled 246 million, up 12% year-over-year and 2.9% quarter-over-quarter.
For the third quarter, Spotify said it expects total MAUs of 639 million, total premium subscribers of 251 million and total revenue of 4 billion euros.
Is Spotify stock a buy, sell or hold?
Spotify has been tearing up the price charts in 2024, rising nearly 80% year-to-date at the time of this writing. Unsurprisingly, Wall Street is bullish on the communication services stock. According to S&P Global Market Intelligence, the consensus recommendation among analysts it tracks is a Buy.
Additionally, the average price target is $351.72, which represents implied upside of nearly 6% to current levels.
Financial services firm Jefferies is one of the more bullish outfits on SPOT stock with a Buy rating and $385 price target.
"We believe SPOT has the runway via user growth and pricing to deliver sustainable 15%+ revenue growth through 2026," Jefferies analyst James Heaney said in a July 21 note. "We believe price increases coming every other year and bundling can help drive the next leg of growth."
Jefferies $385 price target represents implied upside of roughly 16% to where Spotify is currently trading.
Related Content
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market TodayThe main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Retirement Health Care Costs Are On the Rise: What You Need to KnowA 65-year-old retiree will face significantly higher lifetime health care costs than they would have a year ago, even with Medicare. Here are the surprising totals.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Three Ways to Find Deals in Your Investments This YearLooking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
How to Invest for a Fall Interest Rate Cut by the FedA lot can happen between now and then, but the probability the Fed cuts interest rates before the end of the year is better than 85%.
-
You Don't Have to Be Wealthy to Need a Wealth ManagerNavigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.
-
Despite Tariffs, These Investment Experts Are Bullish on European EquitiesEuropean equities were one of the better-performing investments during the first half of 2025. They could be a good long-term prospect for U.S. investors needing to diversify, according to these investment managers.
-
Stocks Are Up and Down on Fed Day: Stock Market TodayIn another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
-
What Federal Interest Rates Mean for Your Grocery BillThe relationship between grocery prices and the Federal Reserve has plenty of back-and-forth. Understand how they interplay.
-
5 Undervalued Stocks to Buy NowThere are plenty of high-quality undervalued stocks to buy right now, you just need to know where to look. Here, we highlight five of our top picks.
