JP Morgan Reduces Price Target on Spotify (SPOT) to $700

Spotify Technology S.A. (NYSE:SPOT) is 1 of the 13 High-Risk High-Reward Growth Stocks to Invest In.

On February 11, JPMorgan trimmed its people terms connected Spotify by 13.0% to $700 from $805, portion retaining an Overweight telephone connected the stock. The steadfast thinks that SPOT’s caller subscription terms increases volition mitigate the interaction of rising royalty costs successful 2026. It besides believes that capitalist sentiment regarding AI’s interaction connected Spotify is overdone.

This people terms update comes a time aft Spotify released its Q4 2025 net study connected February 10. The results showed above-guidance idiosyncratic growth, with full monthly progressive users (MAUs) increasing 11% YoY to 751 cardinal (vs. 745 cardinal guidance) and premium subscribers increasing 10% YoY to 290 cardinal (vs. 289 cardinal guidance). This idiosyncratic maturation translated into 6% YoY gross growth, with full gross reaching €4.5 cardinal (vs. €4.5 cardinal guidance). Premium subscriptions drove this growth, increasing 8% YoY to €4.0 cardinal and offsetting the resistance from Ad-supported revenue, which fell 4% YoY to €0.5 billion.

As for profitability, gross nett maturation outpaced gross maturation astatine 10% YoY to €1.50 cardinal (from €1.35 billion), acknowledgment to a 90-basis-point betterment successful gross margins YoY (150-basis points QoQ) to 33.1%. Operating nett followed a akin trend, increasing 47% YoY to €0.70 cardinal (from €0.58 billion) owed to a 430-basis-point enlargement successful operating margins (190-basis points QoQ) to 15.5%.

Copyright: dennizn / 123RF Stock Photo

Spotify’s absorption besides presented its outlook for the 1^st quarter of 2026. They expect to adhd 8 cardinal caller MAUs, which would bring the full MAU to 759 million. Three cardinal of these caller MAUs volition beryllium premium subscribers, bringing the full premium idiosyncratic basal up to 293 million. Revenue is expected to beryllium level quarter-on-quarter astatine €4.5 cardinal owed to Forex movements.

Spotify Technology S.A. (NYSE:SPOT) is simply a starring integer euphony streaming platform. The institution is based successful Luxembourg and was founded successful December 2006 by Daniel Ek and Martin Lorentzon.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.