Spotify Technology (NYSE:SPOT) Stock Gets Downgrade from Zacks Research

Posted by Brenda Bartman on Oct 24th, 2026

Spotify Technology (NYSE:SPOT – Get Free Report) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Thursday, Zacks reports.

A number of other research analysts also recently commented on SPOT. Oppenheimer raised their target price on shares of Spotify Technology from $550.00 to $650.00 and gave the company an “outperform” rating in a research report on Friday. Wall Street Zen cut shares of Spotify Technology from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Cantor Fitzgerald increased their price objective on shares of Spotify Technology from $490.00 to $550.00 and gave the company a “neutral” rating in a research note on Friday. Piper Sandler reiterated a “neutral” rating and set a $580.00 price objective (up from $540.00) on shares of Spotify Technology in a research note on Friday. Finally, UBS Group cut their price objective on shares of Spotify Technology from $690.00 to $675.00 and set a “buy” rating on the stock in a report on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Spotify Technology currently has an average rating of “Moderate Buy” and a consensus target price of $620.07.

Read Our Latest Stock Report on SPOT

Spotify Technology Trading Up 0.0%

SPOT opened at $583.84 on Thursday. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $676.67. The business’s fifty day simple moving average is $526.60 and its 200-day simple moving average is $497.87. The company has a market capitalization of $120.20 billion, a price-to-earnings ratio of 38.72, a PEG ratio of 1.81 and a beta of 1.61.

Spotify Technology (NYSE:SPOT – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 earnings per share for the quarter, missing the consensus estimate of $3.16 by ($0.13). Spotify Technology had a net margin of 15.74% and a return on equity of 36.15%. The firm had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.47 billion. During the same quarter in the previous year, the firm earned ($0.42) earnings per share. The business’s revenue was up 13.9% compared to the same quarter last year. On average, equities research analysts predict that Spotify Technology will post 13.64 EPS for the current year.

Insider Activity

In other Spotify Technology news, CEO Alex Norström sold 5,436 shares of the stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $502.10, for a total value of $2,729,415.60. Following the completion of the sale, the chief executive officer directly owned 66,773 shares in the company, valued at approximately $33,526,723.30. This trade represents a 7.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,913 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $544.19, for a total value of $11,380,645.47. Following the completion of the sale, the chief executive officer directly owned 20,025 shares of the company’s stock, valued at approximately $10,897,404.75. This represents a 51.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 68,092 shares of company stock worth $35,762,410 over the last ninety days. 0.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Spotify Technology

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Signaturefd LLC grew its position in shares of Spotify Technology by 19.8% during the 3rd quarter. Signaturefd LLC now owns 4,675 shares of the company’s stock valued at $2,279,000 after acquiring an additional 773 shares during the period. Citizens Financial Group Inc. RI increased its stake in shares of Spotify Technology by 10.0% in the 3rd quarter. Citizens Financial Group Inc. RI now owns 2,254 shares of the company’s stock valued at $1,099,000 after purchasing an additional 205 shares in the last quarter. Simplicity Wealth LLC increased its stake in shares of Spotify Technology by 6.9% in the 3rd quarter. Simplicity Wealth LLC now owns 899 shares of the company’s stock valued at $438,000 after purchasing an additional 58 shares in the last quarter. Evergreen Capital Management LLC increased its stake in shares of Spotify Technology by 10.6% in the 3rd quarter. Evergreen Capital Management LLC now owns 2,879 shares of the company’s stock valued at $1,403,000 after purchasing an additional 276 shares in the last quarter. Finally, Gibbs Wealth Management raised its holdings in Spotify Technology by 42.9% in the 3rd quarter. Gibbs Wealth Management now owns 892 shares of the company’s stock worth $435,000 after purchasing an additional 268 shares during the period. 84.09% of the stock is owned by hedge funds and other institutional investors.

Key Spotify Technology News

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

Positive Sentiment: Spotify reported 306 million premium subscribers in the third quarter, up 9% year over year and 1 million above its guidance. Monthly active users rose 11% to 788 million, with growth across all regions. Spotify Stock Jumps as Subscriber Growth Beats Expectations
Positive Sentiment: Revenue increased roughly 16% year over year to about €4.97 billion, while gross margin expanded 140 basis points to 33% and operating income exceeded company guidance. Spotify expects fourth-quarter operating profit above Wall Street expectations and projects revenue of approximately €6.0 billion. Spotify forecasts fourth-quarter profit above estimates on AI bets
Positive Sentiment: Management highlighted AI-powered personalization, including its “taste model,” as a way to increase listening, reduce churn and support pricing power. It also expects moderating expenses and continued margin expansion, with long-term targets of more than 20% operating margin and 35%–40% gross margin by 2030. Spotify Soars After Earnings as the Company Touts AI Benefits and Moderating Costs
Positive Sentiment: Several analysts raised their targets following the results. Morgan Stanley and JPMorgan lifted targets to $700 with overweight ratings, while Wells Fargo, Barclays, Oppenheimer and Guggenheim also raised targets to $650–$660. Spotify Analysts Raise Their Forecasts Following Q3 Earnings
Neutral Sentiment: Spotify’s headline results were mixed: quarterly EPS of roughly $2.78–$2.85 missed consensus near $3.10–$3.18, while revenue was slightly below estimates. Piper Sandler maintained a neutral rating with a $580 target, and Cantor Fitzgerald maintained neutral at $550.
Negative Sentiment: TD Cowen reaffirmed a hold rating with a $525 price target, and some newly raised targets remain below the current market valuation, signaling concerns that much of the subscriber and AI optimism may already be reflected in SPOT shares.

Spotify Technology Company Profile

(Get Free Report)

Spotify Technology SA is an audio streaming company that operates the Spotify platform, offering users access to music, podcasts and audiobooks through internet-connected devices. Its catalog includes licensed recordings from music labels and artists, as well as podcasts and other audio content from creators and publishers.

Spotify provides both an ad-supported service and subscription-based Premium plans. Premium subscribers generally receive ad-free listening and additional features, while the advertising-supported service allows users to access content without a paid subscription.