Spotify's Earnings Report on July 29, 2025: A Guide for Investors.

Spotify (SPOT) rose 2.18% to $720.91, outperforming the S&P 500's 0.54% gain. The stock has fallen 0.65% in the past month and is expected to release its earnings report on July 29, 2025, with projected earnings per share of $2.19 and revenue of $4.93 billion. The Zacks Rank is currently #3 (Hold) and the Forward P/E ratio is 77.36, compared to the industry's average of 28.39. The PEG ratio is 1.88, higher than the industry's average of 2.11.

Spotify (SPOT) saw its stock price rise by 2.18% to $720.91 on July 2, 2025, outperforming the S&P 500's 0.54% gain. The stock has fallen 0.65% in the past month and is expected to release its earnings report on July 29, 2025. Analysts forecast earnings per share of $2.19 and revenue of $4.93 billion. The Zacks Rank is currently #3 (Hold), and the Forward P/E ratio is 77.36, compared to the industry's average of 28.39. The PEG ratio is 1.88, higher than the industry's average of 2.11.

JPMorgan has adjusted its price target for Spotify (SPOT) from $730 to $780, while maintaining an Overweight rating. This update comes as part of the company's outlook revision for the internet sector ahead of the second-quarter earnings. The increase in estimates is attributed to improved market feedback, favorable currency developments, and reduced recession concerns contributing to higher stock valuations [1].

Based on the one-year price targets offered by 34 analysts, the average target price for Spotify Technology SA (SPOT) is $721.30, with a high estimate of $898.42 and a low estimate of $456.20. The average target implies an upside of 1.60% from the current price of $709.95. More detailed estimate data can be found on the Spotify Technology SA (SPOT) Forecast page [1].

The consensus recommendation from 38 brokerage firms is currently 2.3, indicating an "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell [1].

GuruFocus estimates the GF Value for Spotify Technology SA (SPOT) in one year to be $283.94, suggesting a downside of 60.01% from the current price of $709.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Spotify Technology SA (SPOT) Summary page [1].

Spotify Technology SA (SPOT) reported strong subscriber growth, with the highest Q1 net adds since 2020, driven significantly by emerging markets. The company achieved a 15% year-on-year revenue growth on a constant currency basis, with premium revenue rising 16% due to subscriber growth and ARPU gains. Spotify's gross margin improved to 31.6%, surpassing guidance and expanding by 400 basis points year-on-year. The Spotify Partner Program has been successful, paying out over $100 million to podcast creators in Q1, and expanding to nine new markets [1].

However, the macroeconomic environment remains uncertain, which could potentially impact Spotify Technology SA (SPOT) if extreme conditions arise. Advertising revenue growth was modest at 5% year-on-year, with some softness in advertising pricing noted. Operating income was impacted by higher-than-forecasted social charges, which were EUR 58 million above expectations. The company faces challenges in maintaining MAU growth, with Q1 growth being softer due to seasonality and the impact of Wrapped. There is a need for alignment and support from industry partners to offer new experiences, which could delay the introduction of higher-tier subscription offerings [1].

Spotify has also announced a partnership with the Esports World Cup Foundation to serve as the official audio streaming partner for the Esports World Cup 2025. This collaboration will bring fans an immersive audio experience throughout the world’s largest esports and gaming event, powered by Spotify’s library of more than 100 million tracks. The partnership includes the launch of the EWC Music Hub, featuring official tournament anthems and Spotify-curated gaming playlists [2].

In addition, Zain KSA and Cisco have signed a memorandum of understanding to develop AI infrastructure. This collaboration aims to leverage Cisco’s advanced, end-to-end infrastructure solutions for securely building and scaling AI workloads, supporting Zain KSA in delivering high-performance, resilient, and reliable GPU-powered services to the Saudi market [2].

References:
[1] https://www.gurufocus.com/news/2971572/jpmorgan-boosts-price-target-for-spotify-spot-amid-positive-outlook-spot-stock-news
[2] https://www.arabnews.com/node/2608223/corporate-and-sponsored-content