Spotify Technology (NYSE:SPOT) Downgraded to Hold Rating by Pivotal Research

Pivotal Research downgraded shares of Spotify Technology (NYSE:SPOT) from a buy rating to a hold rating in a report issued on Wednesday morning, MarketBeat Ratings reports. They currently have $420.00 price objective on the stock, down from their previous price objective of $875.00.

A number of other analysts have also recently commented on the company. UBS Group lowered their price target on Spotify Technology from $850.00 to $800.00 and set a “buy” rating for the company in a research report on Friday, January 9th. Wells Fargo & Company decreased their target price on Spotify Technology from $750.00 to $710.00 and set an “overweight” rating for the company in a report on Tuesday, January 13th. Guggenheim cut their price target on shares of Spotify Technology from $800.00 to $750.00 and set a “buy” rating on the stock in a report on Thursday, January 8th. Benchmark reduced their price target on shares of Spotify Technology from $860.00 to $760.00 and set a “buy” rating for the company in a research report on Friday, January 16th. Finally, The Goldman Sachs Group raised shares of Spotify Technology from a “neutral” rating to a “buy” rating and dropped their price objective for the company from $735.00 to $700.00 in a report on Friday, January 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $706.42.

Spotify Technology Stock Down 6.8%

Shares of Spotify Technology stock traded down $32.94 during midday trading on Wednesday, hitting $454.23. The company had a trading volume of 1,490,912 shares, compared to its average volume of 3,417,344. The company has a fifty day simple moving average of $538.15 and a 200 day simple moving average of $623.62. The stock has a market cap of $93.52 billion, a price-to-earnings ratio of 47.47, a PEG ratio of 0.89 and a beta of 1.66. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $785.00.

Spotify Technology (NYSE:SPOT) last issued its quarterly earnings results on Tuesday, February 10th. The company reported $5.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.16 by $2.00. The business had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.14 billion. Spotify Technology had a net margin of 13.16% and a return on equity of 33.06%. Spotify Technology’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.88 EPS. As a group, analysts expect that Spotify Technology will post 10.3 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Knuff & Co LLC acquired a new stake in shares of Spotify Technology in the second quarter worth approximately $27,000. Total Investment Management Inc. purchased a new position in Spotify Technology in the 2nd quarter valued at $29,000. Heartwood Wealth Advisors LLC acquired a new stake in Spotify Technology during the 3rd quarter worth $27,000. Greykasell Wealth Strategies Inc. boosted its stake in Spotify Technology by 3,800.0% during the 3rd quarter. Greykasell Wealth Strategies Inc. now owns 39 shares of the company’s stock worth $27,000 after purchasing an additional 38 shares during the last quarter. Finally, KERR FINANCIAL PLANNING Corp purchased a new stake in shares of Spotify Technology during the third quarter worth $26,000. Institutional investors and hedge funds own 84.09% of the company’s stock.

Trending Headlines about Spotify Technology

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

• Positive Sentiment: Q4 earnings beat: revenue and EPS topped estimates, operating margin expanded and Spotify reported record MAU growth (about 751M) and 290M paid subscribers — the core fundamentals behind today’s rally. Spotify Technology SA (SPOT) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Management messaging: CEO/co‑CEO framed 2026 as a year of raised ambition with tighter execution after leadership changes — investors interpret this as improved operational discipline and clearer strategy. Spotify CEO delivers strong message on its future
• Positive Sentiment: AI and new monetization plans: Spotify is pushing AI-driven “derivatives” and fan remix/cover tools as potential new artist revenue and platform revenue streams — a signal of meaningful upside beyond core subscriptions and ads. Spotify eyes AI ‘derivatives’ as new revenue stream for artists
• Neutral Sentiment: Analyst upgrades/price-target raises: Barclays raised its PT to $650 (overweight), and several firms retained Buy ratings despite trimming targets — supporting the bullish narrative but reflecting varied valuation views. Barclays raises Spotify price target
• Neutral Sentiment: Target resets but still-high endpoints: Guggenheim and KeyCorp trimmed price targets to ~$720 but kept favorable stances — signals that sell‑side models are recalibrating but many still see upside. Guggenheim price-target note
• Negative Sentiment: Some analyst caution remains: Pivotal downgraded SPOT to Hold with a $420 target, and at least one note flagged structural deceleration risks — reminders that ad recovery and longer-term growth cadence are not certain. Pivotal Research downgrade / price target
• Negative Sentiment: Ad revenue is still a potential weak spot: company prioritized subscription growth this quarter; ad recovery is expected but not guaranteed, leaving a short-term risk to revenue mix. MarketBeat analysis on ad revenue and outlook

Spotify Technology Company Profile

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.