Erste Group Bank Brokers Reduce Earnings Estimates for SPOT

Spotify Technology (NYSE:SPOT) – Erste Group Bank decreased their FY2026 earnings per share (EPS) estimates for shares of Spotify Technology in a report released on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now anticipates that the company will post earnings of $13.71 per share for the year, down from their prior forecast of $14.07. The consensus estimate for Spotify Technology’s current full-year earnings is $13.77 per share. Erste Group Bank also issued estimates for Spotify Technology’s FY2027 earnings at $17.16 EPS.

Spotify Technology (NYSE:SPOT) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing the consensus estimate of $3.16 by ($0.13). Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The business had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.47 billion. During the same period last year, the company earned ($0.42) EPS. The business’s revenue was up 13.9% compared to the same quarter last year.

A number of other research firms have also recently commented on SPOT. Guggenheim restated a “buy” rating and issued a $565.00 price target on shares of Spotify Technology in a report on Wednesday, August 5th. Morgan Stanley lifted their price objective on shares of Spotify Technology from $610.00 to $640.00 and gave the company an “overweight” rating in a report on Monday, August 3rd. Phillip Securities upgraded shares of Spotify Technology to a “buy” rating and set a $650.00 price objective for the company in a report on Tuesday, August 11th. Benchmark decreased their price objective on shares of Spotify Technology from $695.00 to $650.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. Finally, Wells Fargo & Company lowered their price objective on shares of Spotify Technology from $600.00 to $570.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Spotify Technology currently has an average rating of “Moderate Buy” and an average target price of $610.25.

Spotify Technology Trading Down 0.7%

Shares of SPOT opened at $524.00 on Tuesday. The firm has a market capitalization of $107.88 billion, a P/E ratio of 32.84, a P/E/G ratio of 1.62 and a beta of 1.61. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $696.95. The firm has a fifty day moving average price of $520.20 and a 200-day moving average price of $494.93.

Hedge Funds Weigh In On Spotify Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Pin Oak Investment Advisors Inc. purchased a new stake in shares of Spotify Technology during the second quarter valued at about $27,000. Osbon Capital Management LLC bought a new stake in shares of Spotify Technology in the 4th quarter valued at about $35,000. Portus Wealth Advisors LLC purchased a new position in shares of Spotify Technology in the 1st quarter worth approximately $32,000. Whipplewood Advisors LLC grew its position in shares of Spotify Technology by 423.1% in the 1st quarter. Whipplewood Advisors LLC now owns 68 shares of the company’s stock worth $33,000 after buying an additional 55 shares during the last quarter. Finally, Palladiem LLC purchased a new position in shares of Spotify Technology in the 1st quarter worth approximately $34,000. Institutional investors own 84.09% of the company’s stock.

Insider Buying and Selling at Spotify Technology

In other Spotify Technology news, CEO Gustav Söderström sold 20,913 shares of the firm’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $544.19, for a total transaction of $11,380,645.47. Following the transaction, the chief executive officer directly owned 20,025 shares in the company, valued at $10,897,404.75. This trade represents a 51.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of Spotify Technology stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $502.10, for a total value of $2,729,415.60. Following the sale, the chief executive officer directly owned 66,773 shares of the company’s stock, valued at approximately $33,526,723.30. This trade represents a 7.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 68,092 shares of company stock worth $35,762,410 over the last 90 days. 0.40% of the stock is currently owned by company insiders.

Key Stories Impacting Spotify Technology

Here are the key news stories impacting Spotify Technology this week:

• Positive Sentiment: Spotify expanded its audiobooks business and renewed its agreement with Joe Rogan, supporting efforts to diversify beyond music streaming and strengthen user engagement. Some analysts view the stock as modestly undervalued despite its elevated valuation. Spotify Technology expands audiobooks and renews Rogan
• Positive Sentiment: The launch of Spotify’s internal software-tools business could create a new enterprise revenue stream, while closer Siri integration in iOS 27 makes it easier for iPhone users to control Spotify by voice. Spotify launches software-tools business Spotify Siri integration
• Neutral Sentiment: CEO Gustav Söderström sold approximately $11.1 million of shares to cover tax withholding tied to vested equity awards. The transaction substantially reduced his direct holdings, but its stated tax-related purpose makes it less concerning than a discretionary sale. Spotify CEO SEC filing
• Neutral Sentiment: Investment commentary highlighted Spotify’s strong profitability but questioned whether a valuation near 39 times earnings is justified. The stock has also lagged major market benchmarks over the past six months, adding to investor caution. Spotify valuation analysis
• Negative Sentiment: Erste Group Bank lowered its FY2026 EPS forecast to $13.71 from $14.07 and its FY2027 estimate to $17.16 from $17.52. The reductions reinforce concerns about earnings momentum, particularly with the shares trading at a premium valuation.
• Negative Sentiment: Reports that Spotify’s new lossless-audio feature is causing problems for many desktop users could hurt the rollout’s reception and create near-term customer-experience and support costs. Spotify lossless audio desktop-app problems

About Spotify Technology

Spotify Technology SA is a global audio streaming company that operates the Spotify platform. The service provides users with access to a broad catalog of music, podcasts and audiobooks, along with personalized recommendations, playlists and other discovery features.

Spotify offers a subscription-based Premium service with enhanced listening features, as well as an ad-supported service available at no direct cost to users. The company generates revenue primarily through Premium subscriptions and advertising, including audio, video and display advertising delivered across its platform.

Founded in 2006 by Daniel Ek and Martin Lorentzon, Spotify is headquartered in Stockholm, Sweden, and serves listeners, creators, advertisers and other partners across markets worldwide.