• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Spotify stock may offer buying opportunity after Q1 results, says analyst

by April 29, 2025
by April 29, 2025

Investors should load up on Spotify Technology SA (NYSE: SPOT) if it sells off after earnings later today, says Ben Swinburne.

He’s a senior analyst at Morgan Stanley.

Estimates are for Spotify to report per-share earnings of €2.21 ($2.52) for its Q1 on €4.2 billion in revenue.

This would mean a more than 10% increase in the top- as well as the bottom-line.

Ahead of SPOT’s earnings release, Swinburne rates Spotify stock at “overweight”. His $670 price target indicates potential upside of about 12% from current levels.

Swinburne’s bullish view is particularly exciting, given shares of the streaming giant have already doubled over the trailing 12 months.

Why is Morgan Stanley keeping bullish on Spotify stock?

Morgan Stanley remains positive on Spotify shares as continued “production innovation and business model evolution” could lead to significant positive earnings revisions in the months ahead.

According to Ben Swinburne, investors are underestimating just how big of a lead SPOT really has in terms of engagement over its rivals.

“Spotify users in the US listen to the service 50% more than the next best competitor,” he revealed in a CNBC interview this week.

With movies and TV shows, users often subscribe to a streaming platform that has rights to what they want to watch, and then switch to a different service next month.

But for music, there aren’t that many alternatives. So, the churn is “structurally lower” at Spotify, the analyst added.

SPOT shares could benefit from a push into video podcasts

Ben Swinburne recommends buying Spotify stock on any post-earnings weakness that may show up later today as it’s a “differentiated product” that’s mastered the art of balancing investment and monetisation.

SPOT shares are poised for continued gains in the long run now that it’s “making a big push into video podcasts” as well, according to the Morgan Stanley analyst.

Note that video podcasts reportedly drive higher engagement and lower churn at Spotify.

That said, shares of the company based out of Stockholm, Sweden do not currently pay a dividend, which makes them unsuitable for those interested in setting up a new source of passive income.

Spotify is free from tariffs and recession related overhangs

Finally, Morgan Stanley is constructive on SPOT stock as Trump tariffs threaten the global supply chains and a potential recession by the end of 2025.

Spotify shares remain worth owning this year as media and entertainment subscriptions tend to be “among the most defensive business models” amidst such a challenging macroeconomic backdrop.

Note that Spotify currently generates more than 90% of fits annual revenue from subscriptions.

Other Wall Street shops seem to agree with Morgan Stanley on SPOT shares as well, given the consensus rating on the New York listed firm currently sits at “overweight”.  

The post Spotify stock may offer buying opportunity after Q1 results, says analyst appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
AB Foods shares slip on sugar woes, but Primark still delivers
next post
Teladoc stock forms a giant double bottom: will it rise after earnings?

Related Posts

Asian markets close mixed amid Trump’s tariff threat;...

July 5, 2025

Bitrue rolls out 24/7 tokenized US stock trading...

July 5, 2025

Dow Futures tumble 300 points amid renewed trade...

July 5, 2025

China spares major French cognac makers from tariffs...

July 5, 2025

Berlin seeks Patriot Missiles for Ukraine amid US...

July 5, 2025

London IPO market hits 3 decade low

July 5, 2025

Google faces EU antitrust complaint over AI overviews:...

July 5, 2025

Analyst: ‘make me CEO, I can turn around...

July 5, 2025

Black Sabbath’s farewell show to deliver £20M economic...

July 5, 2025

The billion-dollar bluff: how Jane Street’s high-speed trades...

July 5, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Asian markets close mixed amid Trump’s tariff threat; KOSPI snaps 5-week rally

    July 5, 2025
  • Bitrue rolls out 24/7 tokenized US stock trading with xStocks

    July 5, 2025
  • Dow Futures tumble 300 points amid renewed trade war fears

    July 5, 2025
  • China spares major French cognac makers from tariffs in brandy dispute

    July 5, 2025
  • Berlin seeks Patriot Missiles for Ukraine amid US supply strain: report

    July 5, 2025
  • London IPO market hits 3 decade low

    July 5, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,721)
  • Editor's Pick (181)
  • Investing (185)
  • Stock (1,120)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Asian markets open: Japan’s Nikkei falls 1.1%,...

July 1, 2025

SoFi stock price technical analysis points to...

May 15, 2025

Rolls-Royce share price nears 1,000p as a...

June 4, 2025