Why Spotify Shares Are Trading Higher Today - Spotify Technology (NYSE:SPOT)

Wells Fargo analyst Steven Cahall upgraded Spotify Technology S.A. SPOT from Underweight to Equal-Weight. He raised the price target from $101 to $124.
Following its June 2022 investor day, Cahall gained more compelling insights into SPOT's operating leverage.
Cahall noted the company's belief in accomplishing an operating margin of ~10% in ~5 years, as gross margins in music and podcasting benefit from investments that drive engagement and monetization.
Also Read: Spotify Shares Jump On Analyst Upgrade, Drawing Parallels With Netflix
Cahall never doubted SPOT's user and revenue growth, reinforcing their conviction of a more substantial margin inflection.
All of which made Cahall Equal-Weight despite some concerns about earnings power given the power of labels and competition around streaming music.
Executing at or ahead of the margin plan could make Cahall even more bullish.
However, Cahall could reverse its stance if the financial outlook slowly materializes.
Price Action: SPOT shares traded higher by 4.76% at $102.72 on the last check Wednesday.

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