Despite slipping during October, Spotify stock (NYSE: SPOT) is up big on the year and, according to several bullish investors, has plenty of room for further growth.
Closer to October’s start, Goldman Sachs settled on a neutral Spotify stock (NYSE: SPOT) rating and a reduced target price. But the high-profile downgrade – and the forthcoming exit of Daniel Ek as CEO – hasn’t stopped other analysts from voicing bullish forecasts.
Technically, Goldman’s $770 SPOT target marks only a $5 decrease and, perhaps more importantly, leaves ample room for further share-price growth. When trading wrapped today, Spotify stock was worth just shy of $675 a pop.
That said, the trimmed target did signal a shift from the over-the-top enthusiasm that had been accompanying SPOT discussions and analyses. Despite the company’s mixed Q2 financials and the quick-approaching exit of Daniel Ek as CEO, the initially noted price represents a 47% spike from 2025’s start and a $138 billion market cap.
At least according to non-Goldman analysts’ recent forecasts, there’s still plenty of upside from here.
Morgan Stanley has decided on a buy rating and an $800 target for SPOT, which KeyBanc believes could rise to $830, to name two of many similar analyst ratings. And Bank of America – the entity, some may recall, has been bullish on Spotify stock for a while – is of the belief that SPOT will hit an astonishing $900 per share.
The latter price would elevate Spotify’s market cap past $185 billion – or a full 2.7 times larger than the combined current caps of Warner Music Group (NASDAQ: WMG) and Universal Music Group (Euronext: UMG).
Of course, even if SPOT does eventually climb into the stratosphere – a select few have been ultra bullish on Spotify stock for years as opposed to months – shares probably won’t approach $1,000 apiece overnight. Closer to the present, SPOT is down about 6% during the past month.
At the intersection of the aggressive forecasts and the mentioned second-quarter earnings, there’s certainly a lot riding on the company’s Q3 financials.
Reportedly scheduled to release on November 4th, said financials will likely be scrutinized from the perspective of subscriber additions, ad-supported results, and profitability in particular.
Regarding subscriptions, Wall Street hasn’t responded positively to paid-user misses in the past – although Spotify is adding most of its subscriptions in emerging markets with comparatively modest ARPUs. As such, it’ll be interesting to see whether the DSP can achieve the forecasted 281 million subs.
Similarly, the company is pulling out all the stops – including loosening free-tier restrictions and expanding its ad-inventory availability – in an attempt to improve ad-supported revenue following a Q2 dip.
While near-term results are important enough, logic suggests that the market’s real focus will be on Spotify’s adverts showing next year.
Stated bluntly, if the category’s results haven’t improved by midyear, following all manner of expansion efforts, the point won’t bode well for SPOT’s positioning.
Nor will a failure to turn a profit. Q2 2025 snapped Spotify’s profitability streak, which fueled (or at a minimum accompanied) 2024’s share-price ascent. With subscriber growth slowing in established markets, Spotify’s net income may depend in part on forthcoming superfan packages carrying higher subscription charges.
