Spotify Technology (SPOT) released its financial performance for the first quarter of 2023. Analysts predict revenue exceeding $3.9 billion and earnings per share of 78 cents, as per Benzinga Pro. In the corresponding quarter last year, revenue stood at $3.27 billion. Spotify has missed revenue consensus estimates in four out of the past five quarters.
Morgan Stanley analyst Benjamin Swinburne suggested that upcoming price adjustments for subscribers could contribute to Spotify’s positive prospects. Swinburne upgraded his rating to Overweight and raised the price target from $270 to $350. He believes Spotify’s transition from a strong product to a profitable enterprise will accelerate in 2024, driven by price increases, market share gains, and operational efficiency.
KeyBanc analyst Justin Patterson emphasized the importance of Spotify subscribers utilizing multiple services. He highlighted that 25% of Spotify subscribers have explored audiobooks, with a significant portion falling within the 18-34 age demographic. Spotify’s introduction of audiobook listening hours has also seen a surge in additional purchases, suggesting the company’s success in expanding its audiobook offerings.
Spotify’s strategic initiatives, including its focus on artificial intelligence and the promotion of Taylor Swift’s latest album, have garnered attention from analysts. The company’s efforts to enhance user experience through AI-powered recommendations and capitalize on Swift’s immense popularity could positively impact future performance.
Several analysts have recently revised their ratings and price targets for Spotify:
– Macquarie: Outperform, raises price target from $300 to $330
– Loop Capital: Hold, raises price target from $165 to $250
– Canaccord Genuity: Buy, raises price target from $315 to $330
– Benchmark: Buy, raises price target from $290 to $325
– Deutsche Bank: Buy, raises price target from $260 to $340
– Goldman Sachs: Neutral, raises price target from $235 to $277
– Raymond James: Outperform, raises price target from $260 to $320
Investors and analysts will closely monitor key areas in Spotify’s first-quarter results, including:
– Potential price increase for subscribers
– Artificial intelligence advancements
– Impact of Taylor Swift’s album performance
Spotify’s shares are currently trading at $273.31, within a 52-week range of $128.67 to $313.16. Over the past year, Spotify’s stock has risen by more than 100%.
