SPOT$647.87
$650.4
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AI SPOT Summary
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Powered by LiveAIOverall Analysis
BuySpotify shows strong thematic potential in digital audio and is demonstrating improving profitability and revenue growth. However, current valuation metrics and recent technical indicators suggest a cautious approach for short-term investors.
Thematic
Spotify is a dominant player in the rapidly expanding digital audio and podcasting market, benefiting from secular trends in content consumption and subscription services.
Fundamental
Spotify shows improving financial performance with growing revenue and a path towards sustained profitability. The company maintains a solid balance sheet with increasing cash reserves.
Technical
The stock has experienced significant short-term volatility, with current technical indicators suggesting mixed signals and potential for a period of consolidation or price adjustment.
| Factor | Score |
|---|---|
| Digital Audio & Streaming Dominance | 95 |
| Subscription Model Resilience | 80 |
| Podcast Monetization | 75 |
| Creator Economy Support | 85 |
| Regulatory Landscape | 70 |
| Factor | Score |
|---|---|
| Valuation | 50 |
| Profitability | 70 |
| Growth | 75 |
| Balance Sheet Health | 80 |
| Cash Flow | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 60 |
| Momentum | 50 |
| Volume Confirmation | 70 |
| Support & Resistance | 70 |
AI Investing Checklist
Powered by LiveAIBullish Points (5)
Positive EPS Surprises and Improving Margins
The company has a history of beating EPS estimates, with significant positive surprises in recent quarters (e.g., +48.76% in Q2 2024, +25.93% in Q4 2024). Net margin has improved from -4.0% in 2023Q4 to 7.3% in 2024Q4 and 5.4% in 2025Q1, indicating enhanced profitability.
Potential for Growth at a Reasonable Price (GARP)
While the P/E ratio (TTM: 104.19) appears high, the forward P/E ratios for 2025 (e.g., Q1 2025 at 501.3, Q2 2025 estimate of 2.2) suggest potential for significant earnings growth. The positive revenue growth and improving net income trends, coupled with a large market cap, indicate potential for continued expansion if growth expectations are met.
Bearish Points (6)
High P/E Ratio and Price-to-Sales
The trailing Price-to-Earnings (P/E) ratio of 104.19 and Price-to-Sales (P/S) ratio of 11.3 are very high, suggesting the stock may be overvalued relative to its current earnings and sales. Negative net income in previous years (2022, 2023) also presents a valuation challenge.
Past Losses and EPS Volatility
The company reported net losses in 2022 and 2023, and EPS estimates for future quarters (e.g., Q2 2025 estimate 2.2 vs. reported 1.07, a -51.34% surprise) show significant volatility and potential for earnings misses. This indicates a less stable earnings profile.
Calendar
July 2025
29
Next Earnings Date
H: $2.53
A: $2.05
L: $1.41
H: 4.34B
A: 4.27B
L: 4.19B
Profile
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City, Luxembourg.
Seasonals
Price Target
750.45 USD
The 39 analysts offering 1 year price forecasts for SPOT have a max estimate of 911.94 and a min estimate of 470.74.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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