Spotify Stock Gets Boost As Analyst Cites Growth In Music, Podcasts, And Audiobooks

JPMorgan analyst Doug Anmuth reiterated an Overweight rating on Spotify Technology SPOT and raised the price target to $670 from $640 on Tuesday. Shares were trading higher on Wednesday.

As the largest pure-play audio streaming platform, Spotify continues to benefit from the broader shift from transaction-based to access-based models. The company is growing monthly active users (MAUs) at roughly 10% and is generating positive free cash flow.

Also Read: Spotify Adds 3 Million Subscribers But Profit Miss Sends Stock Sliding

Anmuth sees Spotify's post-earnings pullback as a buying opportunity, citing solid mid-teens growth and continued progress toward its medium-term margin goals. The stock declined on lighter Q2 MAUs, margin variability, and tempered expectations for the superfan tier. Still, Spotify remains confident in strong second-half MAU growth, supported by product improvements, efficient marketing, and its year-end Wrapped campaign.

Anmuth also expects Spotify to keep investing in its core Music offering while expanding across Audiobooks, Video, and Podcasts. He projects:

• 2025 net adds of 67 million MAUs (down from 73 million in 2024)
• 24 million Premium Subscribers (vs. 27 million in 2024).
• 15% FX-neutral revenue growth, including 9% growth in Premium Subscribers
• A 4% FX-neutral ARPU increase.
• Gross margins expanding to 31.8% (+160bps Y/Y)
• Operating margins to 12.7% (+400bps Y/Y)
• Free cash flow reaching €2.9 billion (+26% Y/Y).

Margin gains will be front-loaded, with sequential compression in Q2 and Q3 due to continued growth investments, Anuth says.

Overall, he models average 2025–2026 FX-neutral revenue growth of 13%, gross profit growth of 17%, operating income growth of 44%, and free cash flow growth of 20%—metrics he says justify Spotify's premium valuation.

Price Action: Spotify stock traded higher by 6.42% at $613.98 at the last check on Wednesday.

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