Key Takeaways:
- Spotify's (SPOT, Financial) stock suffered a 6% decline due to missed operating profit expectations despite positive revenue growth.
- Wall Street analysts have set a one-year average target price of $640.31, suggesting potential upside.
- GuruFocus estimates indicate a significant potential downside based on GF Value calculations.
Spotify's Earnings Report: A Mixed Bag for Investors
Spotify's stock, trading under the ticker SPOT, recently experienced a 6% dip following its first-quarter earnings report. Despite acknowledging a solid 15% increase in revenue, reaching €4.19 billion, along with robust premium subscriber growth and an impressive 32% rise in gross profit, the market reacted negatively. The primary catalyst for this decline was the shortfall in operating income, which failed to meet investor expectations.
Wall Street Analysts' Outlook
Delving into analysts' perspectives, 36 financial experts have provided one-year price targets for Spotify Technology SA. The average target stands at $640.31, with projections ranging from a high of $739.93 to a low of $378.48. This average target suggests a notable upside potential of 13.68% from the current price of $563.28. For further insights, visit the Spotify Technology SA (SPOT, Financial) Forecast page.
Consensus among 39 brokerage firms indicates an average recommendation of 2.2 for Spotify, categorizing it as "Outperform." The brokerage recommendation scale spans from 1 (Strong Buy) to 5 (Sell).
Analysis of Spotify's GF Value
According to GuruFocus estimates, Spotify Technology SA's GF Value for the upcoming year is projected at $250.58. This estimation suggests a potential downside of 55.51% from the current price of $563.28. The GF Value reflects the fair market value based on historical trading multiples, past growth, and future performance predictions. Explore more detailed data on the Spotify Technology SA (SPOT, Financial) Summary page.
