Spotify Technology (NYSE:SPOT) Shares Gap Up – What’s Next?

Shares of Spotify Technology (NYSE:SPOT) gapped up prior to trading on Tuesday . The stock had previously closed at $414.84, but opened at $462.78. Spotify Technology shares last traded at $487.9320, with a volume of 2,803,262 shares trading hands.

Spotify Technology News Summary

Here are the key news stories impacting Spotify Technology this week:

• Positive Sentiment: EPS and revenue beat — Spotify reported sharply higher adjusted EPS (about $5.16–$5.20) and revenue (~$5.3B), both topping Street estimates, which underpins the rally. Here’s What Key Metrics Tell Us About Spotify (SPOT) Q4 Earnings
• Positive Sentiment: Strong user traction — Monthly active users rose to ~751M (up ~11% YoY) and premium subscribers hit ~290M (up ~10% YoY), showing price increases haven’t materially dented growth and supporting subscription revenue momentum. Spotify pops 10% on strong user growth, earnings beat
• Positive Sentiment: Improved profitability and pricing power — Gross margin and operating-income improvements were highlighted (pricing + mix and cost control), and management guided Q1 profits above estimates, which supports a higher earnings trajectory. Listen to Conference Call
• Neutral Sentiment: Management change & tone — Founder Daniel Ek is moving to a new role while co‑CEOs emphasize 2026 as a year to “raise ambition”; investors will parse leadership shifts but the near-term focus is the earnings beat and guidance. Spotify expects profit above estimates as founder Daniel Ek moves to new role
• Neutral Sentiment: New features and product expansion — Spotify is rolling out behind‑the‑scenes content, video and audiobook initiatives that may broaden monetization long term but are incremental near term. Spotify has a new feature that takes you behind the scenes
• Neutral Sentiment: Analyst target moves — Some price-target cuts (e.g., KeyCorp trimmed its TP) had pressured the stock into earnings day; most analysts retained buy ratings, so revisions are worth monitoring but not uniformly negative. KeyCorp price-target note via Benzinga
• Negative Sentiment: Ad-revenue softness — Management noted ad revenue is a weak spot this quarter; because ads are the main lever to monetize the large free base, slower ad recovery could limit upside to total revenue growth. MarketBeat summary / conference materials

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Phillip Securities raised shares of Spotify Technology from a “hold” rating to a “moderate buy” rating in a research report on Monday, November 10th. The Goldman Sachs Group raised Spotify Technology from a “neutral” rating to a “buy” rating and decreased their target price for the stock from $735.00 to $700.00 in a research report on Friday, January 23rd. Moffett Nathanson assumed coverage on Spotify Technology in a report on Tuesday, January 27th. They set a “neutral” rating and a $487.00 target price on the stock. Guggenheim reduced their price target on Spotify Technology from $800.00 to $750.00 and set a “buy” rating on the stock in a research report on Thursday, January 8th. Finally, Sanford C. Bernstein dropped their price objective on shares of Spotify Technology from $830.00 to $650.00 and set an “outperform” rating on the stock in a research note on Wednesday, January 14th. Two research analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $724.16.

Spotify Technology Stock Up 14.4%

The firm has a market capitalization of $97.69 billion, a price-to-earnings ratio of 74.22, a P/E/G ratio of 0.81 and a beta of 1.66. The stock has a 50 day moving average of $541.52 and a 200 day moving average of $626.11.

Hedge Funds Weigh In On Spotify Technology

Several large investors have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in shares of Spotify Technology during the 4th quarter valued at about $711,460,000. Capital World Investors grew its holdings in shares of Spotify Technology by 40.7% during the third quarter. Capital World Investors now owns 2,730,713 shares of the company’s stock valued at $1,906,260,000 after purchasing an additional 789,755 shares during the last quarter. Capital Research Global Investors acquired a new stake in shares of Spotify Technology during the 3rd quarter worth approximately $512,190,000. Principal Financial Group Inc. raised its position in shares of Spotify Technology by 3,534.9% during the 3rd quarter. Principal Financial Group Inc. now owns 571,474 shares of the company’s stock worth $398,889,000 after purchasing an additional 555,752 shares during the period. Finally, National Pension Service bought a new stake in shares of Spotify Technology in the 4th quarter worth approximately $316,278,000. 84.09% of the stock is currently owned by institutional investors.

About Spotify Technology

Spotify Technology is a digital audio streaming company best known for its on-demand music service and a growing portfolio of spoken-word content. Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon and launched commercially in 2008, the company offers a cross-platform app that enables users to discover, stream and organize music, podcasts and other audio. Its primary consumer products include a free, ad-supported tier and a paid Spotify Premium subscription that provides ad-free listening, offline playback and higher-quality audio streams.