Erste Group Bank Has Weak Outlook for SPOT FY2027 Earnings

Spotify Technology (NYSE:SPOT) – Erste Group Bank reduced their FY2027 EPS estimates for Spotify Technology in a research note issued on Wednesday, March 4th. Erste Group Bank analyst S. Lingnau now forecasts that the company will post earnings per share of $18.38 for the year, down from their prior estimate of $18.76. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for Spotify Technology’s current full-year earnings is $10.30 per share.

Other equities analysts have also recently issued research reports about the company. Sanford C. Bernstein dropped their price objective on Spotify Technology from $830.00 to $650.00 and set an “outperform” rating for the company in a report on Wednesday, January 14th. Citizens Jmp started coverage on shares of Spotify Technology in a report on Wednesday, December 17th. They issued a “market outperform” rating and a $800.00 price target on the stock. Cantor Fitzgerald reduced their target price on shares of Spotify Technology from $615.00 to $525.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 11th. UBS Group decreased their price target on shares of Spotify Technology from $850.00 to $800.00 and set a “buy” rating for the company in a research note on Friday, January 9th. Finally, Citigroup raised Spotify Technology from a “neutral” rating to a “buy” rating and set a $650.00 price objective on the stock in a research note on Friday, January 30th. Two research analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $703.87.

Spotify Technology Stock Performance

SPOT opened at $530.27 on Monday. The stock’s 50 day moving average price is $506.30 and its 200-day moving average price is $598.51. Spotify Technology has a one year low of $405.00 and a one year high of $785.00. The stock has a market cap of $109.17 billion, a price-to-earnings ratio of 55.01, a P/E/G ratio of 1.19 and a beta of 1.66.

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, topping analysts’ consensus estimates of $3.16 by $2.00. The company had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.14 billion. Spotify Technology had a return on equity of 31.35% and a net margin of 13.16%.During the same period last year, the company earned $1.88 earnings per share. Spotify Technology’s revenue was up 6.8% on a year-over-year basis.

Institutional Trading of Spotify Technology

Hedge funds have recently modified their holdings of the company. Helios Capital Management PTE. Ltd. grew its stake in shares of Spotify Technology by 56.3% in the third quarter. Helios Capital Management PTE. Ltd. now owns 7,500 shares of the company’s stock worth $5,235,000 after acquiring an additional 2,700 shares in the last quarter. Bessemer Group Inc. lifted its stake in Spotify Technology by 35.1% during the third quarter. Bessemer Group Inc. now owns 682,639 shares of the company’s stock worth $476,483,000 after purchasing an additional 177,310 shares during the last quarter. Truxt Investmentos Ltda. acquired a new position in shares of Spotify Technology in the 3rd quarter valued at $2,093,000. Ownership Capital B.V. purchased a new position in shares of Spotify Technology during the third quarter worth about $2,769,000. Finally, Generali Asset Management SPA SGR increased its position in Spotify Technology by 30.9% during the third quarter. Generali Asset Management SPA SGR now owns 68,023 shares of the company’s stock worth $46,692,000 after buying an additional 16,054 shares during the period. 84.09% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Spotify Technology

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

• Positive Sentiment: Strong recent fundamentals: SPOT reported a big EPS beat in its latest quarter and revenue growth, supporting a higher long‑term valuation case and giving bulls ammunition. Earnings/Performance Summary
• Positive Sentiment: New and expanding institutional interest: some long‑term managers (e.g., Polen Capital, D.E. Shaw additions cited in filings) have added positions, signaling conviction in podcasts/audiobooks and ad monetization upside. Polen Capital / Institutional Activity
• Neutral Sentiment: Short‑term service disruption resolved: users reported outages across multiple platforms including Spotify, but the company’s app and website were reported as “much better now,” suggesting limited lasting user‑impact if recovery holds. Outage Recovery
• Neutral Sentiment: Momentum and valuation check: analysis pieces highlight that SPOT has seen large recent share swings (notably a strong 1‑month gain) and renewed attention on valuation metrics — useful context but not an immediate catalyst. Valuation Analysis
• Neutral Sentiment: Platform dynamics: research on music discovery (TikTok vs Spotify) underscores changing consumption patterns—important for long‑term content strategy but incremental versus near‑term earnings catalysts. Consumption Trends
• Negative Sentiment: Analyst downgrades and reduced sentiment: Wolfe Research, Pivotal and others have trimmed ratings/targets citing valuation and execution risk after price hikes; this has prompted near‑term profit taking. Analyst Downgrades
• Negative Sentiment: Lowered estimates from brokers: Erste Group and others have trimmed earnings forecasts, adding pressure to the stock’s near‑term outlook as investors reassess growth vs. valuation. Broker Estimate Cuts
• Negative Sentiment: Broader risk‑off market backdrop: higher macro risk and rotation away from long‑duration growth names have amplified selling pressure on high‑multiple stocks like SPOT. Investor Rotation / Mixed Institutional Activity

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.