• Mark Mahaney from Evercore ISI set a price target of $650 for Spotify, indicating a potential upside of 7.81%.
• Previous quarter earnings per share (1Q 2025) were $1.16, missing the consensus estimate of $2.37.
• Quarterly sales reached $4.53 billion, missing expectations but indicating a 15% year-on-year growth.

Spotify Technology S.A. (NYSE:SPOT) is a leading music streaming service that offers a vast library of songs, podcasts, and other audio content to users worldwide. Competing with platforms like Apple Music and Amazon Music, Spotify has carved out a significant market share with its user-friendly interface and personalized playlists. On April 30, 2025, Mark Mahaney from Evercore ISI set a price target of $650 for SPOT, suggesting a potential upside of 7.81% from its trading price of $602.93 at that time.

Despite the optimistic price target, Spotify's first-quarter 2025 financial results were mixed. The company reported earnings per share of $1.16, which fell short of the analyst consensus estimate of $2.37. This shortfall in earnings might have contributed to the cautious outlook from some analysts. However, Spotify's quarterly sales were a bright spot, reaching $4.53 billion below the expected $4.56 billion.

Spotify's user base continues to expand, with the platform adding 3 million monthly average users in the first quarter, bringing the total to 678 million. This growth aligns with the company's guidance and highlights its ongoing appeal to music and podcast listeners. Looking ahead, Spotify anticipates second-quarter 2025 revenue of $4.65 billion, which is below the analyst forecast of $4.74 billion. The company also projects its total monthly average users to reach 689 million, indicating continued user growth.

Following the earnings announcement, Spotify's shares experienced a 3.5% drop, closing at $576.94. However, the stock has since rebounded, with the current price at $604.15, reflecting an increase of 4.72% or $27.21. Today, SPOT has traded between a low of $565.02 and a high of $605.69. Over the past year, the stock has seen a high of $652.63 and a low of $280.66, indicating significant volatility. With a market capitalization of approximately $120.96 billion and a trading volume of 2,221,371 shares, Spotify remains a key player in the music streaming industry.