Current Development of Spotify Stock
The Spotify stock (ISIN: LU1778762911) shows remarkable performance, especially compared to the previous year. Last year, the price increased by 108%, while a gain of 50% was achieved in the last six months. Closing prices ranged from $435.00 to $619.00 in 2025, with the current price standing at around $574.25 as of April 21.
Price Development and Forecasts
Analysts see further price potential. The average price target is $662.17, while the optimistic forecast goes up to $740.00. Morgan Stanley also rates the stock with a price target of $670 at an “Overweight” rating.
Growth Drivers and Fundamentals
Spotify benefits from its leadership in personalized music streaming. Annual revenue growth of 14-17% is projected by 2028, supported by a current revenue growth of 18.31% per year. The EBIT forecasts for 2027 are about 10% above market expectations, with Spotify showing strong financial health and robust cash flow generation.
Valuation Discussions and Risks
However, high valuation multiples raise questions. The P/E ratio for 2025 is about 48.9x, while a moderate improvement to 38.3x is expected for 2026. Competitive pressure and volatile advertising revenues present additional risks. Recently occurring technical issues in April highlighted operational risks, though these did not show long-term impact on the stock price.
For private investors, the Spotify stock remains attractive despite valuation concerns, as long as the projected growth is realized. A long-term investment horizon is recommended in this case.