Spotify (NYSE: SPOT) shares rose in pre-market trading on Monday after reports emerged that the music streaming giant plans to raise subscription prices in several European and Latin American countries. According to the Financial Times, the price hike is expected to take effect as early as June, with individual subscriptions rising by approximately €1.
However, Spotify has indicated that it does not intend to raise subscription rates in the U.S. market during the summer. The information comes from sources close to the matter, though Spotify declined to comment on inquiries from the Financial Times.
The news appeared to positively influence investor sentiment, reflecting confidence in Spotify’s pricing strategy and its potential to drive revenue growth in international markets. The decision to hike prices in certain markets outside the U.S. could be part of Spotify’s broader strategy to capitalize on its market position and the value of its streaming services.
Analysts Adjust Price Targets for Spotify Ahead of Q1 Earnings
As Spotify prepares to announce its first-quarter earnings on April 29, several analysts have adjusted their price targets for the stock.
- Benchmark analysts lowered their Spotify price target from $720 to $700, while maintaining a Buy rating on the stock.
- Morgan Stanley retained an Overweight rating and a $670 price target, reaffirming its positive outlook on the company.
- Cantor Fitzgerald analyst Deepak Mathivanan reduced his price target from $600 to $520, while maintaining a Neutral rating.
As of the latest update, Spotify (NYSE: SPOT) shares are up 0.85%, trading at $626.
Maria Reed is a financial journalist with a passion for covering US equities. She joined the ABBO News team in June 2023. Maria holds an M.S. degree in International Economics and Finance from Otto-von-Guericke University in Magdeburg and is a CFA Level 2 candidate. Read Full Bio
