Home 
Today's Top Picks 
Top Performers 
Watchlist 
My Robo Portfolios 
ETF Zone 
Help & Tutorial - Chart
- Upturn Summary
- Highlights
- Revenue
- Valuation
- About
SPOT 
Spotify Technology SA (SPOT)
Top performer
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- Pass (Skip investing)
Stock price based on last close (see disclosures)
- ALL
- 1Y
- 1M
- 1W
Upturn Advisory Summary
02/25/2026: SPOT (4-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Number of Analysts
40 Analysts rated it
Highly popular stock, broad analyst coverage, trusted insights, strong investor interest.
1 Year Target Price $652.98
1 Year Target Price $652.98
| 19 | Strong Buy |
| 6 | Buy |
| 13 | Hold |
| 2 | Sell |
| 0 | Strong Sell |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 95.39B USD | Price to earnings Ratio 37.3 | 1Y Target Price 652.98 |
Price to earnings Ratio 37.3 | 1Y Target Price 652.98 | ||
Volume (30-day avg) 40 | Beta 1.67 | 52 Weeks Range 405.00 - 785.00 | Updated Date 02/26/2026 |
52 Weeks Range 405.00 - 785.00 | Updated Date 02/26/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 12.42 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-02-10 | When Before Market | Estimate 2.78 | Actual 4.43 |
Profitability
Profit Margin 12.87% | Operating Margin (TTM) 15.47% |
Management Effectiveness
Return on Assets (TTM) 10.17% | Return on Equity (TTM) 31.93% |
Valuation
Trailing PE 37.3 | Forward PE 31.15 | Enterprise Value 86990099139 | Price to Sales(TTM) 5.55 |
Enterprise Value 86990099139 | Price to Sales(TTM) 5.55 | ||
Enterprise Value to Revenue 4.29 | Enterprise Value to EBITDA 31.3 | Shares Outstanding 205832527 | Shares Floating 155835806 |
Shares Outstanding 205832527 | Shares Floating 155835806 | ||
Percent Insiders 23.48 | Percent Institutions 68.6 |
Upturn AI SWOT
Spotify Technology SA
Company Overview
History and Background
Spotify Technology SA was founded in 2006 by Daniel Ek and Martin Lorentzon in Stockholm, Sweden. It officially launched in 2008. Key milestones include its expansion into numerous countries, the introduction of its freemium model, and its direct listing on the New York Stock Exchange (NYSE) in 2018 under the ticker SPOT. The company has continuously evolved its offerings, moving beyond music streaming to include podcasts and audiobooks, and investing in proprietary content and technology.
Core Business Areas
- Premium Subscriptions: This segment generates revenue from users who pay a monthly subscription fee for ad-free listening, offline downloads, and higher audio quality. It is the primary revenue driver for Spotify.
- Ad-Supported: This segment generates revenue from advertising displayed and played to users who do not subscribe to the premium service. It serves as a funnel for converting free users to paying subscribers.
- Other Revenue: This segment includes revenue from non-music and non-podcast related activities, such as e-commerce partnerships and hardware sales, though this is a smaller portion of the overall business.
Leadership and Structure
Spotify Technology SA is led by CEO Daniel Ek. The company operates with a decentralized structure, empowering various teams to innovate and drive growth. Its core operations are in streaming services, content acquisition, and technology development.
Top Products and Market Share
Key Offerings
- Spotify Premium: The flagship subscription service offering ad-free music and podcast streaming, offline listening, and high-quality audio. Competitors include Apple Music, Amazon Music, YouTube Music, and Tidal. As of Q4 2023, Spotify had 236 million Premium subscribers globally. While specific revenue per product is not publicly broken down, Premium subscriptions are the dominant revenue source.
- Spotify Free: The ad-supported tier providing access to music and podcasts without a subscription. This acts as a significant user acquisition channel. Competitors are similar to Premium, with platforms like Pandora (US) also offering free tiers. Spotify had 602 million Monthly Active Users (MAUs) as of Q4 2023, with a significant portion on the free tier.
- Spotify for Podcasters: A suite of tools and services for podcasters to create, distribute, and monetize their content on the Spotify platform. This includes hosting, analytics, and advertising tools. Competitors include Apple Podcasts Connect, Google Podcasts, Anchor (now Spotify for Podcasters), and specialized podcast hosting platforms like Buzzsprout.
- Spotify HiFi (Planned): A planned higher-fidelity audio streaming tier, intended to compete with services like Tidal HiFi. Details and launch date are yet to be fully confirmed.
Market Dynamics
Industry Overview
The digital audio streaming industry is highly competitive and rapidly evolving. It is characterized by a shift from ownership to access, driven by the convenience of subscription models. Growth is fueled by increasing internet penetration, smartphone adoption, and a growing appetite for on-demand content, including music, podcasts, and audiobooks.
Positioning
Spotify is a market leader in the global music streaming industry, recognized for its extensive library, user-friendly interface, personalized recommendations, and strong brand recognition. Its freemium model is a key competitive advantage, allowing it to acquire a large user base which can then be converted to premium subscribers. The company's significant investment in podcasts and exclusive content also helps differentiate it.
Total Addressable Market (TAM)
The TAM for digital audio streaming is substantial and growing, encompassing music, podcasts, and audiobooks. Estimates vary, but it is projected to reach hundreds of billions of dollars in the coming years. Spotify is well-positioned to capture a significant portion of this TAM, leveraging its global reach, diverse content, and established user base.
Upturn SWOT Analysis
Strengths
- Global brand recognition and a large, engaged user base.
- Dominant market share in music streaming.
- Strong recommendation algorithms and personalization features.
- Diversification into podcasts and audiobooks.
- Effective freemium model for user acquisition.
- Significant investment in exclusive content and proprietary technology.
Weaknesses
- Reliance on third-party content (music labels) leading to high royalty costs.
- Profitability challenges due to high royalty payouts and marketing expenses.
- Intense competition from major tech players.
- Perceived lower artist payouts compared to some competitors.
- Dependence on subscription growth for revenue.
Opportunities
- Expansion into emerging markets with growing internet access.
- Growth in the podcast advertising market.
- Development of new audio formats and interactive content.
- Monetization of podcasts through various avenues (e.g., subscriptions, live events).
- Integration with other smart devices and platforms.
- Further expansion into audiobooks and spoken word content.
Threats
- Increasing competition from well-funded tech giants (Apple, Amazon, Google).
- Changes in music licensing agreements and royalty rates.
- Potential for new disruptive technologies or platforms.
- Economic downturns affecting consumer discretionary spending on subscriptions.
- Regulatory scrutiny regarding market dominance and content moderation.
- Shifts in consumer preferences away from streaming services.
Competitors and Market Share
Key Competitors
- Apple Music (AAPL)
- Amazon Music (AMZN)
- YouTube Music (GOOGL)
- Tidal
- Pandora (SIRIUSXM)
Competitive Landscape
Spotify's advantage lies in its established brand, vast user base, and sophisticated recommendation engine. However, it faces intense competition from tech giants with significant financial resources and integrated ecosystems. Competitors like Apple Music benefit from deep integration within the Apple device ecosystem, while Amazon Music leverages its Prime membership. YouTube Music benefits from YouTube's massive reach and video content. Spotify differentiates itself through its focus on audio discovery, podcasting, and a strong creator ecosystem.
Major Acquisitions
Anchor
- Year: 2019
- Acquisition Price (USD millions):
- Strategic Rationale: To empower independent podcasters by providing tools for creation, hosting, and distribution, thereby expanding Spotify's podcast ecosystem.
Gimlet Media
- Year: 2019
- Acquisition Price (USD millions): 230
- Strategic Rationale: To acquire premium podcast content and talent, enhancing Spotify's original and exclusive podcast offerings and strengthening its position in the spoken-word audio market.
The Ringer
- Year: 2020
- Acquisition Price (USD millions):
- Strategic Rationale: To bolster its sports and culture podcast content with a well-established brand and popular personalities.
Sonantic
- Year: 2023
- Acquisition Price (USD millions): 105
- Strategic Rationale: To enhance its AI-powered audio tools and potentially for creating synthetic voices for content and voice-enabled experiences.
Growth Trajectory and Initiatives
Historical Growth: Spotify has demonstrated strong historical growth in user acquisition (MAUs) and premium subscriber numbers. Revenue has also grown consistently, although profitability has been a challenge. The company has successfully expanded its service offerings and geographical reach.
Future Projections: Analysts project continued growth in MAUs and premium subscribers, driven by market expansion and new product initiatives. Revenue is expected to grow steadily, with a strong focus on improving profitability through operational efficiencies and increased advertising revenue. Projections suggest a path towards consistent positive net income in the coming years.
Recent Initiatives: Recent initiatives include aggressive expansion into podcasting with acquisitions and exclusive content deals, development of social audio features, introduction of audiobook offerings, and ongoing efforts to optimize its platform and user experience for both creators and consumers.
Summary
Spotify Technology SA is a dominant force in the global audio streaming market, boasting a massive user base and strong brand recognition. Its extensive music library, personalized recommendations, and growing podcast portfolio are key strengths. However, the company faces persistent challenges in achieving consistent profitability due to high content costs and intense competition from tech giants. To maintain its growth trajectory, Spotify must continue to innovate, expand its premium offerings, and effectively monetize its growing podcast and advertising segments while managing its cost structure.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Spotify Investor Relations Reports (Q4 2023 Earnings Release, Annual Reports)
- Industry analysis reports from reputable market research firms (e.g., Statista, Forrester)
- Financial news outlets (e.g., Wall Street Journal, Bloomberg, Reuters)
Disclaimers:
This analysis is based on publicly available information as of the latest reporting period and is intended for informational purposes only. Financial data and market share estimates are subject to change and may vary between sources. This is not financial advice, and investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Spotify Technology SA
Exchange NYSE | Headquaters - | ||
IPO Launch date 2018-04-03 | Co-CEO & Director Mr. Alex Norström | ||
Sector Communication Services | Industry Internet Content & Information | Full time employees 7000 | Website https://www.spotify.com |
Full time employees 7000 | Website https://www.spotify.com | ||
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates in two segments, Premium and Ad-Supported. The Premium segment offers online and offline streaming access to its catalog of music and podcasts, including video, lossless music, and audiobooks in select markets through subscription offerings primarily sold directly to end users and partners. The Ad-Supported segment provides limited on-demand online access to its catalog of music and online and offline access to its catalog of podcasts on computers, tablets, mobile devices, and other smart devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is headquartered in Stockholm, Sweden.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.