Spotify Stock Drops 5% Before Q2 Earnings as Wall Street Debates Future Direction
Spotify's stock (NYSE: SPOT) has experienced a nearly 5% decline ahead of its Q2 earnings release, currently trading at $301.08 per share. Despite this recent dip, the stock maintains a strong year-to-date performance, up 59.5% since early 2024 and 87% from July 2023.
Spotify stock price line chart
Analysts present contrasting viewpoints on Spotify's future:
Bearish Outlook:
- Redburn Atlantic analyst Agnieszka Pustula sets a $230 target price with a sell rating
- Concerns about ambitious growth expectations ($100 billion annual revenue by 2032)
- Cites consumer pressure and competition from Apple Music, Amazon Music, and YouTube Music
Bullish Perspective:
- KeyBanc analyst Justin Patterson maintains an overweight rating with a $410 target price
- Jefferies issues a buy rating with a $385 target price
Key Focus Areas:
- Revenue growth and spending reduction
- Podcast monetization
- Ad-supported listening enhancement
- Potential implementation of fees for free accounts in developed markets
Spotify will release its Q2 financials on the 23rd, providing clearer insights into the company's direction and financial health.
Businessman checking phone with charts
Concert stage with colorful lights
Man presenting Spotify Now Playing feature
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