Spotify has been upgraded to a buy rating due to its improved financial margins and robust user growth, now reaching 751 million monthly active users. The company shows a 33% gross margin and 15.5% operating margin, benefiting from secular operating leverage that enhances profitability. Additional revenue streams from audiobooks, podcasts, and AI-driven features strengthen Spotify's competitive position. Despite risks from music label dominance, competitor bundling, and stock-based compensation dilution, the valuation suggests potential for double-digit returns.
Spotify Technology SA is forecasted to deliver steady second-quarter results, with Jefferies maintaining a positive long-term outlook and a $600 price target. The investment bank expects gross margins around 33.1%, revenue growth of 15% year-over-yea...
Spotify has extended its "Managed Accounts" feature, allowing parents to control their children's music listening, to its free tier in the U.S., U.K., Australia, France, Germany, and the Netherlands. Previously available only to paid subscribers, thi...
Spotify has introduced a new AI-powered chat feature for Premium users in the U.S., Ireland, and Sweden, allowing interactive conversations to select music, podcasts, or audiobooks. Available on iOS and Android for users 18+, the beta release lets us...
