Spotify stock (NYSE: SPOT) has rebounded following its post-earnings falloff. Photo Credit: Rubaitul Azad
What post-earnings slip? Spotify has now regained most of the stock-price ground it surrendered after revealing mixed-bag Q2 2025 financials. Meanwhile, several analysts believe there’s room for further valuation growth.
When the market opened today, Spotify stock (NYSE: SPOT) was hovering around $695 per share, reflecting a 3.5% boost across the past five trading days, a 3.1% dip across the last month or so, and a 52% spike from 2025’s start.
Keeping the focus on the aforementioned post-earnings decline for a moment, the price also represents a 12.1% jump from July 29th – when the company released its second-quarter financials.
In other words, at least when it comes to SPOT’s positioning, two or so weeks have brought quite a bit of change. Naturally, the point raises questions about the reasons behind the resurgence and Spotify’s path forward.
On the former front, the broader market’s strong performance is worth keeping in mind – as are the previously highlighted bullish SPOT forecasts. The likes of Wells Fargo, Morgan Stanley, and Benchmark (which actually lowered its target, albeit to $800) recently put out bullish Spotify stock targets, and at a minimum, the sentiment isn’t hurting SPOT.
Regarding maneuvers on Spotify’s end as opposed to inherently unpredictable market trends, the company opened August by announcing a sweeping collection of price increases for markets outside North America.
SPOT enjoyed a bump immediately thereafter, but the recovery fizzled out, we reported. Though calls for Spotify price increases and other ARPU-minded moves aren’t exactly unprecedented, the measured market response might underscore churn concerns. Of course, we’ll learn more about the raises’ precise subscribership impact from the business’s Q3 and Q4 earnings reports.
Those same breakdowns will also reveal whether Spotify can consistently expand on the ad-supported side. The platform’s underwhelming Q2 advertising revenue (down 1% YoY at $528.2 million/€453 million) didn’t help the overall quarterly financials and stock price.
That’s especially true given that the lackluster showing followed the start of an aggressive video buildout, the debut of an in-house “Creative Lab” marketing agency, the launch of an ad exchange, and a not-so-subtle suggestion to begin charging ad-supported users a monthly fee.
Now, Spotify global advertising head Lee Brown is out (and bound for DoorDash) – as is head of advertising sales for the U.K. and Northern Europe Ed Couchman, who’s joining Netflix. Time will tell whether their replacements can breathe new life into the DSP’s advertising operations, which it’s safe to say haven’t been aided by on-platform adult videos and drug-peddling podcasts.
Closer to the present, Spotify yesterday unveiled a direct deal with Kobalt. Against the backdrop of the streaming service’s bundling craze, licensing certainty definitely isn’t a bad thing – and will help set the stage for the rollout of remix/mashup features.
Plus, with Kobalt, UMPG, and Warner Chappell direct pacts in place, a Sony Music Publishing agreement is presumably on the horizon for Spotify as well.
At the time of writing, Spotify stock had risen nearly 1.5% on the day to $705 per share, which, while well short of the 52-week high, still marks a 111% hike from mid-August 2024.
